Washington – last week Congress faced two extremely vital issues: the choice, who will replace John Boehner as a representative of the Chamber of Representatives and GOP plans regarding the reduction of income tax rates if she wins the presidency next year.
After five years of acting as the chairman of the House of Representatives, Boehner lost his trust and support of conservatives in his party and will give her resignation by the end of October.
The hunt for the successor is underway, but it will probably be a fierce and confused fight that could not explode at a worse moment – over the abyss, when everything is threatened, and Republicans must assure Americans that they can restore the nation on the course.
The leader of the majority in the House of Representatives Kevin McCarthy from California announced his candidacy, but Boehner chose him manually to second place and many members of the conservative wing of the House of Representatives did not trust him.
McCarthy has committed to “heal divisions at our conference with work, sometimes and trust. I am looking forward to fighting for our common conservative rules, “he wrote in a letter to his colleagues from the Republican party.
Two Republicans rejected the candidacy for the highest position: chairman of the Committee of ways and resources Paul Ryan from Wisconsin and chairman of the Freedom Club of the House of Representatives Jim Jordan of Ohio.
The chairman of the JEB financial services committee did the same
Hensarling from Texas, who in the past fought with Boehner, and Republican Peter Rosk from Illinois.
While die -hard conservatives were frantically looking for a candidate on the weekend who could challenge McCarthy, only a Republican Daniel Webster from Florida, who shot from a distance, put a hat in the ring.
Many members of the conservative community warned that other potential candidates must soon act if they have any hope for placing an avid conservative in the highest managerial position.
“If the bottom -up conservatives want any of them to become a speaker, they must quickly unite around the alternative,” wrote Jim Geraghty on Monday on the National Review website. Otherwise, McCarthy “is a great success” if he becomes another speaker.
If so, thanks to the years that he built relations since 2010 and collected Iou.
“You all know me. We spent together late in the House of Representatives. I visited your districts, met your families and voters, “he wrote in his letter to my colleagues. “More importantly, I have learned your ideas, goals and vision of our conference and our country.”
McCarthy also wrote about the deep dissatisfaction of some members from the way Boehner dealt with legislation and voting strategies.
“I know that the People’s Chamber works best when the management of her chosen listens to deputies and respects the legislative process entrusted to committees,” he wrote.
If McCarthy becomes a speaker, one of the main issues he will have to deal with will be a tax reform.
All leading candidates of the Republican Party have developed a tax reduction plan to rebuild Obama’s ruined economy and reform the dysfunctional tax code to make it simpler, just and favorable growth.
The latest plan was presented on Monday by Donald Trump, but many economists scratched their heads, claiming that his proposal skips the most vital details about whether he was neutral in terms of income.
“It does not seem to me the slightest neutral in terms of income, unless it is in a very short perspective and no unrealistic assumptions are taken as to the income obtained as a result of one -off tax leave on repatriated profits of enterprises,” says Bruce Bartlett, one of Directors of President Reagan Economic Advisors in the 1980s.
“It looks like a huge tax relief for the rich,” says Dean Baker from the Liberal Center for Research on Economic Policy.
On the other hand, Trump said that his tax reductions “would cause the development of the American economy at the level she has not seen for decades. And all this does not improve the US situation
deficit.” Really?
According to his plan, the highest tax rate rate will drop from 39.6% to 25%, and the highest rate of corporate tax will drop to 15% from 39.1%.
Trump claims that he would balance these tax reductions by gradually withdrawing a wide range of tax deductions, legal gaps and other tax breaks for immense business and wealthy people, but gives little details about their nature.
He would arrange one of the largest legal gaps in force for managers of hedging funds, raising taxes on the fees they collect, called “interest percentage”.
He would eliminate taxes on the first $ 50,000 income of marriage couples, but releases the popular deduction of interest on the mortgage from its tax changes.
Many of his recommendations are similar to those that his rivals also proposed about the presidential nomination GOP.
Senator Marco Rubio called for the abolition of alternative minimum tax and all deductions, except for the interest on the mortgage and donations for charity. Senator Rand Paul would replace the entire tax code with a flat tax of 14.5%. Jeb Bush said he would consolidate seven tax thresholds to three.
Trump said that his tax reduction plan would stimulate economic growth by 3 to 6 percent, “to the level that has not been seen from decades.”
He says that his plan will be “fully paid”, but he did not take into account income forecasts in his estimates of higher economic growth.
This means that he does not know how many revenues from economic growth would be balanced by tax income losses, which would only deteriorate the debt of our country of $ 18 trillion.
But the two other first sketches are waiting in the back room. One in the Committee on the Methods and Mernship of the House of Representatives, which is chaired by Ryan and the other in the Senate Finance Committee, headed by Senator Orrin Hatch from the state of Utah.
Unfortunately, the tax reduction plan, which could appear next year, must wait for a up-to-date, prostrost and prophecy president, because tax reductions are not in the Barack Obama program.
