a report has surfaced that in the final days before passage of the bill, Pence pushed to label the bill “Ryancare.”
“The President and I are grateful for Speaker Paul Ryan and all the House Republicans who stood with us in this effort to begin the end of Obamacare,” said the Vice President, who lamented, “As we all learned yesterday, Congress just wasn’t ready.”
.. Pence vowed that they will cut corporate taxes. He said they would cut business taxes “to 15 percent so American companies will invest in American operations that create American jobs.”
The Next Dilemma of the Republican Tax Overhaul
How to treat the millions of business owners whose income passes through to their individual tax returns is crucial to the Republican tax agenda
Republicans want to lower the tax rate for these businesses in conjunction with corporate rate cuts. But they haven’t decided what should be taxed at 25%, as a firm’s business income, and what should be taxed at 33%, as the owner’s wages at the firm.
The rules would affect millions of business owners whose income passes through to their individual tax returns rather than appearing on corporate filings. They include law firms, hedge funds and manufacturers and they are a powerful force in Republican politics.
.. If they apply the 25% liberally to pass-through income, the federal government could lose hundreds of billions of dollars in revenue and create a new form of widespread tax avoidance.
They could also create inequities, with law firm associates paying the 33% top rate on wages while their bosses, the partners, pay 25% on income for similar work.
.. Because House Republicans want to lower the corporate rate to 20%, pass-through firms want to follow that rate lower.
Deal for Carrier to Keep U.S. Plant Open May Hinge on Tax Overhaul
Talks include the conglomerate’s plans to shift more than 2,000 jobs from Indiana to Mexico
The incoming president’s goal is to show that he can keep some of his boldest campaign promises, and the CEO needs to keep peace with the federal government, a critical customer for products like its jet fighter engines. Military sales account for roughly 10% of the company’s $56 billion annual total, the company says.
United Technologies, like other globalized U.S. companies, also has large reserves of cash overseas—profits that corporations are waiting to repatriate to the U.S. until Congress cuts the level of tax they would pay. The company reported that 85% of its total cash, or more than $6 billion, was overseas, as of the end of 2015.
.. Democratic Sen. Bernie Sanders said Saturday that Mr. Trump must make it clear that if United Technologies “wants to receive another defense contract from the taxpayers of this country, it must not move these plants to Mexico.”
.. The company is the sole provider of jet engines for the F-35 Joint Strike Fighter.