Here’s what I’m hearing as far as the possibilities for a tax-reform bill this session:
- Option 1 is the bill I discussed yesterday, which came out of a joint House-Senate committee. House Democrats say this would result in a tax increase for taxpayers earning between $20,000 and $180,000 a year. House Republicans counter that the only increase would be for about one-third of those earning between $80,000 and $140,000 a year.
- Option 2 is designed to address the Democrats’ criticism by changing the phase-out of itemized deductions that would have led to the tax increases described above. House Republicans say the result would be that 90 percent of those in the $80,000-$140,000 bracket would see no change or a tax cut, and that the overall plan would amount to a tax cut of $150 million to $200 million. As of last night, however, I was hearing different things as far as whether there was a fiscal note to accompany that plan and back up the House Republicans’ claims.
- Then there’s