Is it possible for a Party to pass a tax cut that is "permanent"?

[kentuck]

Suppose they pass it with a one-vote majority?

Would the Democrats, if they won a super majority in the House and Senate, be unable to do anything about it?

It has always been my opinion that any Congress can vote down what was passed in a previous Congress if they had the numbers and the will to do so.

Republicans want to change the corporate rate to 20% and make it "permanent".

Shouldn't someone call them on this bullshit?

[greeny2323]

1. Future Congresses are not bound by previous Congresses

They are only bound by the Constitution.

[Kentonio]

2. Permant just means the new majority would have to vote to change it

Which means the GOP would inevitable label it as an attack on business.

[BigmanPigman]

3. Good question.

Bernie, Robert Reich, Ali Velshi and others have sad how the tax cut would be permanent for the rich but that there are parts in the bill that will take any small tax relief now for the average American away in a few years and the middle class will end up paying more through special, hidden points in the Tax Scam bill. The deductions and increase to EVERYONE's healthcare will cost people more than the proposed, temporary tax cuts that is in the bill. All of this is getting rushed through so that these very real and negative parts of the bill don't reach too many Americans who do not know or understand the whole thing and all weigh all the pros vs. cons.

There are many actions being planned for Nov 28 -Dec 2 (after the reps return from Thanksgiving Recess and they vote on it). We must get them to delay it. Moveon.org had an emergency phone call last night and Bernie was one of the speakers discussing how the average citizen can stop this shitty bill but we have to act fast. Call, protest, go to town halls, write, sign petitions, share this through social media, etc. (see the link).
https://act.moveon.org/call/call-oppose-tax-bill

[bigbrother05]

4. In Congress, permanent only means it doesn't have a set expiration date

They use a lot of tricks to get a favorable CBO score for the 10 year window.

[MineralMan]

5. Nope. The only thing that is even close to permanent is

a Constitutional Amendment, and they can't do that without additional approval by the states. Anything else can be changed by Congress at a later date.

[GoCubsGo]

6. It is no more "permanent" than any other tax bill.

A new one can always be passed that could end it--depending on who is running Congress. They can also write and pass bills that will eliminate the loopholes that are allowing numerous corporations to pay the 0% taxes they're paying now, as well as rescinding the government hand-outs many of them get, on top of not paying any taxes.

[kentuck]

7. If they succeed in cutting top tax rate to 20%...

...then Democrats, when they gain the majority in the House, should increase the top rate by 38% for the same duration that Republicans hold the 20% rate. That would re-coup the losses under the Republicans and make a fairer tax system.

[unblock]

9. unfortunately, it's very damaging to have the corporate tax rate cut even for just a single year.

literally trillions of dollars of profits that american companies earned overseas are parked offshore waiting for a lower corporate tax rate to be repatriated back into the united states.

those trillions were accumulated over many years.

one single year of lower corporate tax rates will bring back the vast majority of that money.


that's a lost opportunity to get solid tax revenue on that income and a horrible precedent. if we raise the corporate tax rate back up, american companies will just do the same thing for another 20 years waiting for a republican congress to cut their tax rates or give them a tax "holiday".

the only solution, imho, is to tax all worldwide profits, giving a credit for any taxes paid to a foreign government. that way we're collecting taxes in the year the profit is earned and it becomes a lot harder to dodge taxes on foreign profits.

right now it's easy, all they have to do is not bring the money back home.

[kentuck]

10. Could they pass legislation to make it illegal to park profits off-shore?

And put teeth in it to hold them responsible?

[unblock]

12. they could, yes.

well, *a* congress could. clearly not *this* one....

[kentuck]

13. Would a Democratic Congress pass such a law?

Are they too fearful of raising taxes, even on billionaires?

[unblock]

15. there's actually an international push to eliminate tax havens.

so it's possible that europe may pave the way. that may make it easier for a democratic congress to follow.

otherwise we might have to wait until we have over 60 democratic senators, which may be quite a while even if the tide is turning thanks to donnie.

pity, because i think that taxing world-wide income in the year it's earned (with credit for foreign taxes paid) just sounds like basic common sense.

[unblock]

8. what they mean by "permanent" is "without being reversed by future law"

if the republican tax bill passes, the corporate tax cuts will be "permanent" in the sense that those cuts will remain in place unless and until some future congress reverses them.

the individual tax cuts that some people will get will not be "permanent" in the sense that *this very bill* already calls for them to vanish in the 10th year. i.e., they are by law temporary.

the reason they do this nonsense is because of the reconciliation rules. if they wanted to craft a bill with 60+ votes in the senate, non of this would be necessary. however, because they want to squeak one through with only 50 votes (plus pence if needed), they have certain restrictions.

among the restrictions, they can't bust the budget resolution they already passed, which gives them $1.5 trillion of deficit room over the next 10 years. however, they can't cause the deficit to increase *at all* after that 10 year period.

that's why they made the individual tax cuts expire, so they can be scored as not increasing the deficit after the 10th year.

their expectation is that the politics will be such that a future congress will be required to extend it, when their 10-year window extends further into the future, or when they can get 60+ votes for it.

[Ilsa]

11. Sen. Collins' tax credit for teacher supplies was made permanent last year.

And the latest tax proposals overturn it so they get no deductions or credits for buying school supplies.

I guess we all need to incorporate.

[Mariana]

14. No, they're lying when they say that.

There's no such thing as a permanent law in this country. Laws are subject to change by future legislation. Even the Constitution can be amended.