What are the opinions on the GOP tax bill? It varies based on perspective.
Some business, advocacy, and trade organizations express significant concerns. Conversely, some supporters argue that the tax plan will stimulate economic growth.
The legislation is not yet enacted. A new series of votes are anticipated shortly. Republican leaders in Congress have committed to presenting it to President Trump for approval before Christmas.
Below are some summarized opinions for and against the bill. Statements have been shortened in some instances for clarity.
Millions may become uninsured
The proposed legislation repeals a vital part of Obamacare known as the individual mandate. The nonpartisan Congressional Budget Office predicts that by 2027, 13 million fewer individuals would have health insurance, with premiums likely increasing by around 10% in most years.
Families USA: “The Republican leadership in the House and Senate has crafted a deal that will drive up health insurance premiums, forcing millions—including those with pre-existing conditions like cancer or diabetes—to pay more for their coverage, while causing countless others to lose their health insurance entirely. This is all to fund permanent tax breaks for affluent donors and corporations.” — Frederick Isasi, Executive Director of Families USA
Families USA is a progressive advocacy organization representing healthcare consumers.
Lower corporate tax rates will enhance the economy
The legislation reduces the corporate tax rate from 35% to 21% and lightens tax obligations for pass-through entities like LLCs and partnerships.
Business Roundtable: “Business leaders commend the conference committee for reaching an agreement that promotes U.S. competitiveness and fosters economic expansion.” — Statement from Business Roundtable
Business Roundtable consists of CEOs from some of the largest corporations in the U.S.
American Bankers Association: “The ABA believes that the major reforms in this legislation will stimulate economic growth and generate jobs. We especially appreciate the provisions that significantly lower tax rates for all types of businesses beginning in 2018. The banking sector currently has one of the highest effective tax rates, and these important modifications will enable our members to better support their customers and the overall economy.” — Rob Nichols, ABA president and CEO
The ABA represents banks of various sizes.
Americans for Prosperity: “This final tax reform plan provides relief to the working class while creating opportunities and growth for small business owners and job creators in America. … While it’s not flawless, the House and Senate should be praised for their dedicated efforts to greatly enhance our flawed system, and the Trump administration deserves recognition for its unwavering commitment to accomplishing tax reform this year.” — Tim Phillips, AFP President
AFP is a conservative advocacy organization.
Financial Services Roundtable: “Tax reform will create greater opportunities for individuals and American businesses of all sizes. Congress should rapidly finalize tax reform and allow the nation to proceed with economic initiatives.” — Tim Pawlenty, CEO of Financial Services Roundtable
Financial Services Roundtable represents banks and credit card institutions.
Homeowners will be negatively affected
The legislation reduces the cap on the mortgage interest deduction from $1 million to $750,000 and removes the ability to deduct interest on home equity loans. Individuals with existing mortgages will not be affected by these changes.
California Association of Realtors: “The finalized tax reform bill penalizes homeowners and undermines the concept of homeownership. … While Congress claims this is a tax cut for the middle-class, the truth is that thousands of middle-class homeowners in California will face tax increases first.” — Steve White, CAR President
CAR represents 190,000 real estate professionals in California.
States and cities will be harmed
The legislation maintains state and local tax deductions for itemizers but imposes a $10,000 cap on deductions.
National League of Cities: “Congress cannot fund tax reform by dismantling the essential resources that help strengthen, nurture, and cultivate economically vibrant communities. [The bill] retains many essential credits and offers partial protection for state and local tax deductions (SALT). However, the final bill fails to fulfill its promise to safeguard American families and their communities.” — Mark Stodola, NLC President and mayor of Little Rock, Arkansas
NLC advocates for 19,000 American cities and towns.
Charitable giving will suffer
The tax bill approximately doubles the standard deduction. Taxpayers can only claim deductions for charitable donations if they itemize. Nonprofit organizations claim that the increased standard deduction will eliminate a crucial incentive for charitable donations.
National Council of Nonprofits: “This agreement … will have disastrous effects on charitable nonprofits operating in communities across the nation. … If enacted, the bill would, among other consequences, reduce charitable contributions by $13 billion or more per year; eliminate over 220,000 nonprofit jobs; and hinder nonprofits’ ability to meet community needs. … Simplifying the tax code could have been a noble aim, yet this bill would result in far more harm than good.” — Tim Delaney, President and CEO of National Council of Nonprofits
National Council of Nonprofits advocates for charitable organizations in the U.S.
Small businesses will be adversely affected
The bill introduces new regulations for businesses that report taxes on an individual basis, known as pass-throughs.
Businesses for Responsible Tax Reform: “The proposals do little to simplify the tax code; in fact, it complicates it further for the over 90% of small businesses structured as pass-through entities. As a result, small business owners will continue to invest time and resources in navigating a convoluted and confusing tax system, further skewing the playing field in favor of large corporations that can afford to hire teams of accountants to exploit every loophole. … A growing deficit is detrimental to business as it leads to higher interest rates.” — Letter to Congress from Businesses for Responsible Tax Reform, supported by nearly 2,000 entrepreneurs
Businesses for Responsible Tax Reform is a coalition that represents small business interests.
The economy may benefit, but federal debt will increase
The legislation, while reducing corporate taxes, is projected to add roughly $1.46 trillion to the deficit over the next decade, as per the nonpartisan Joint Committee on Taxation.
American Enterprise Institute: “The bill includes a long-overdue reduction in the corporate tax rate that will encourage investment in the U.S., leading to enhanced worker productivity and salaries. However, it will also escalate government debt, potentially driving interest rates higher and mitigating the anticipated increase in investment. Tackling the long-term fiscal imbalance is now more critical than ever.” — Alan D. Viard, AEI Resident Scholar
