Comment on Tax overhaul effort lacks advantages Reagan enjoyed in 1986

Tax overhaul effort lacks advantages Reagan enjoyed in 1986

Congressional leaders are pushing an overhaul that would keep gross tax revenues roughly the same — "revenue neutral" in Washington-speak — while clearing away many tax breaks and using the resulting savings to lower rates, with the top brackets getting most of the benefit. The White House says it wants to devise a plan while Capitol Hill Republicans would prefer to take the lead. Reagan entered the tax debate after winning re-election in 1984 in an electoral landslide and unveiled his initial tax plan that November. [...] tax reform is a lot simpler. Chief of Staff Reince Priebus is under pressure after failing to deliver on health care, and congressional Republicans are unsure who's running the show. The game plan for GOP leaders is to pass tax reform by relying almost exclusively on Republican votes and utilizing filibuster-proof procedures in the Senate. Almost all the key players are less seasoned than their 1986 predecessors, starting with House Speaker Paul Ryan, R-Wis., who was hobbled during the health care debacle by the hard-right Freedom Caucus. [...] the structure of the code permitted lawmakers to cut back on corporate tax preferences and shift some of that revenue to help cut tax brackets for individuals. To try to lower corporate tax rates further, House Republicans are pushing a deeply controversial plan to tax imports that's a dead letter in the Senate.

 

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