AZ Congressional Delegation

The D.C. Swamp: The ‘Corker Kickback’ in the GOP tax bill (Updated)

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Sen. Bob Corker (R-TN) was recently hailed for being the only Tea-Publican in the Senate who voted aganst the terrible Senate GOP tax bill.  Then on Friday, he announced that he would support the GOP conference committee bill, which is marginally worse than the GOP Senate bill. WTF?

So what would cause Sen. Corker to sell out? John Cassidy of the New Yorker hinted at the reason in The Final Version of the G.O.P. Tax Bill Is a Corrupt, Cruel, Budget-Busting Hairball:

Another provision, which wasn’t in the House or Senate bills, allows real-estate developers who own buildings through L.L.C.s, as Trump does, to deduct twenty per cent of the income that these properties generate. To qualify for the break, the properties have to be newish ones that haven’t been fully depreciated. “This helps people who have held property for a while, like Donald Trump,” David Kamin, a law professor at New York University, told David Sirota and Josh Keefe, of the International Business Times.

Another beneficiary of this provision may well be Senator Bob Corker, of Tennessee, who is also a real-estate investor. Corker had been the only Republican to vote against the Senate version of the tax bill, but on Friday he announced that he’d changed his mind, and that “after great thought and consideration, I believe this once-in-a-generation opportunity to make U.S. businesses domestically more productive and internationally more competitive is one we should not miss.” Corker didn’t mention his personal interests, but Sirota and Keefe did. “Federal records reviewed by IBT show that Corker has millions of dollars of ownership stakes in real-estate-related LLCs that could also benefit” from the final bill, they reported.

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McSally’s Holding Pattern

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By Michael Bryan Arizona has become one of the few states that are key to control of the U.S. Senate in 2018. With Flake declining to run for re-election and McCain facing the end of his life, both of Arizona’s Senate seats are in flux at a time when electoral tides are strongly disadvantaging Republicans. When … Read more

Michael Bloomberg on the #GopTaxScam

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Ady Barkan, an activist who has ALS and who works with the Center for Popular Democracy, has set up a web site titled stopgoptaxscam.com. It is a useful resource guide (h/t for the graphic, right).

Addressing the merits of the “GOP tax scam” is former New York Mayor Michael Bloomberg, in an op-ed appearing at his Bloomberg News website. This Tax Bill Is a Trillion-Dollar Blunder:

Last month a Wall Street Journal editor asked a room full of CEOs to raise their hands if the corporate tax cut being considered in Congress would lead them to invest more. Very few hands went up. Attending was Gary Cohn, President Donald Trump’s economic adviser and a friend of mine. He asked: “Why aren’t the other hands up?”

Allow me to answer that: We don’t need the money.

Corporations are sitting on a record amount of cash reserves: nearly $2.3 trillion. That figure has been climbing steadily since the recession ended in 2009, and it’s now double what it was in 2001. The reason CEOs aren’t investing more of their liquid assets has little to do with the tax rate.

CEOs aren’t waiting on a tax cut to “jump-start the economy” — a favorite phrase of politicians who have never run a company — or to hand out raises. It’s pure fantasy to think that the tax bill will lead to significantly higher wages and growth, as Republicans have promised. Had Congress actually listened to executives, or economists who study these issues carefully, it might have realized that.

Instead, Congress did what it always does: It put politics first. After spending the first nine months of the year trying to jam through a repeal of Obamacare without holding hearings, heeding independent analysis or seeking Democratic input, Republicans took the same approach to tax “reform” — and it shows.

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The math gets tricky in the Senate for GOP tax bill (updated)

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There is a glimmer of hope today that The Republican tax plan,  the most unpopular bill in 30 years, is not a done deal. The math is getting tricky in the Senate.

Roll Call reports that Marco Rubio, Mike Lee Support for Tax Bill in Jeopardy:

Sens. Marco Rubio, R-Fla., and Mike Lee, R-Utah, are withholding their support for the GOP tax bill in an attempt to bolster the child tax credit, a change that may be difficult amidst opposition from House Republicans.

The duo is hoping to make the credit fully refundable. The two senators, backed by top White House adviser Ivanka Trump, had previously succeeded in increasing the credit to $2,000 per child in the Senate-passed bill.

It was reduced to $1,100, only a $100 increase, by GOP conferees on their tax bill.

Should Lee and Rubio join Corker in opposing it, the bill would fail. The GOP can only afford to lose the support of two members in the event of a tie-breaking vote from Vice President Mike Pence.

“I understand this is a process of give and take, especially when there are only a couple of us fighting for it. Your leverage is lessened,” Rubio said. “But given all of the other changes they made in the tax code leading in to it, I can’t in good conscience support it unless we are able to increase the refundable portion of it. And there are ways to do it,” he continued.

A spokesman for Lee said the Utah Republican is now “undecided” on the legislation.

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A Republican lawmaker, speaking on background to discuss internal negotiations, said it was unlikely the changes sought by Rubio and Lee could be made given opposition in the House.

The Hill adds: “Making the Child Tax Credit fully refundable would cost $87 billion over 10 years — a significant amount that won’t be easy to pay for. Negotiators are already straining to cover the costs of other fixes, such as lowering the top individual tax rate to 37 percent and allowing people to deduct up to $10,000 for state and local taxes.

“The House pushed back hard on that,” the member said of the revised child tax credit in the Senate bill. “We’re pretty much done with that.”

So is Sen. Rubio a “no” vote then? As Chris Hayes cautions, “If your life depends on Marco Rubio having a spine, you are already dead.” I have to agree: Trump predicts Rubio will vote for tax plan.

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An Open Letter to John McCain: Consider Your Legacy, Senator

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Dear Senator McCain: As the Senate vote on the House-Senate conference committee tax bill approaches, we urge you to consider your legacy and ask yourself this very basic question: Do you want your last political act – your final legacy — to be one of rank hypocrisy, by all appearances motivated by the selfish desire … Read more