PREDICTION FOR 2018

A few more hurdles must be overcome before a final tax package can become law. The Senate bill and a version passed earlier by the House of Representatives must now be reconciled. The reconciled measure must then be approved by both chambers of Congress before it is submitted to Trump for him to sign into law.

The rush to pass this flawed bill will be the mistake that gives the Democrats control of the House in 2018. By removing deductions this legislation increases taxes. It is that simple. Yes, the deductions would have to be removed in order to expand the tax base to support the cuts, however the deductions chosen hurt the middle class.

Negotiations over the tax measures will take place as Congress simultaneously tries to meet a December 8 deadline for government funding to expire, putting additional pressure on Republicans to get a new tax law on the books before Christmas as requested by Trump.

Tax cuts that only help the wealthy and imperial the housing market coupled with either a government shut down or no action on DACA will be the end of Republican control of congress.

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