tax overhaul

Reporters and researchers are just starting to comb through the huge, rushed-to-passage tax package to figure out the implications.

One of the changes, according to the Institute on Taxation & Economic Policy, which advocates for a "fair and sustainable" tax system, allows far more wealthy donors in 10 states to turn a profit through "donations" to private school scholarships.

A little-remarked-upon provision changing the way inflation is calculated is among the big changes contained in the tax overhaul signed by President Trump last week.

The new method, using the so-called "chained" consumer price index to determine when to adjust tax brackets and eligibility for deductions, is expected to push more Americans into higher tax brackets more quickly. In the past, the tax code used the traditional CPI measure issued by the Labor Department each month.

Republicans in Congress are promising that their tax bill will create jobs. One place where we know it's going to create a lot of work is at the IRS.

That agency will have to figure out how to interpret and implement the hundreds of pages of changes to the tax code that were just passed, at a time when it is already struggling with budget cuts and staff reductions.

The Trump administration says it's already working with the IRS to update tax forms and withholding tables, promising that most taxpayers will notice a difference in their pay stubs by February.

Updated on Dec. 22 on 12:02 p.m. ET

Congressional Republicans delivered on their first major legislative accomplishment of the Trump era on Wednesday, when the House voted 224-201 to pass a $1.5 trillion tax package. The bill cuts individual rates for eight years and slashes the top corporate tax rate to 21 percent permanently.

Updated at 1:26 a.m. ET Wednesday

Republicans in Congress approved a sweeping and controversial $1.5 trillion tax overhaul, with the Senate voting early Wednesday along straight party lines to move the measure forward.

Graduate students nationwide can breathe a sigh of relief: Their tuition waivers won't be taxed after all.

A provision in the Republican House tax plan had originally proposed taxing grad students' tuition waivers as income. It was a controversial proposal and sent a wave of anxiety across campuses, leading to protests at dozens of universities.

Despite some last-minute challenges, Republicans appear to have the votes to give President Trump his first legislative victory.

Final passage of the bill that will reshape the tax system and touch nearly every American is expected early this week, possibly Tuesday or Wednesday.

It will be Trump's first significant legislative accomplishment, not a bad Christmas gift for a president, who often boasts of lesser successes.

With lawmakers in the House and Senate announcing that they've reached a deal, affordable housing advocates are anxiously waiting to see which version of the bill wins out with regard to housing. They say the House bill has a poison pill in it.

"The effect would be devastating," says Diane Yentel, president of the National Low Income Housing Coalition. "It would mean a loss of around 800,000 affordable rental homes over the next 10 years."

Once upon a time, there was a group of conservative intellectuals who were agnostic about Donald Trump.

They were not "Never Trumpers," but they weren't Trump superfans either.

They thought Trumpism might offer something new for the GOP. Since Trump wasn't tied to the orthodoxies of either party he could, theoretically, offer a more populist path toward the future for Republicans.

Conservative writer Henry Olsen, at the Ethics and Public Policy Center, looked to the tax plan to reflect this new vision, but it wasn't there.

Republicans say the tax-cutting overhaul being debated in Congress will jump-start the U.S. economy, leading to a lot more investment and hiring by companies.

But some economists say the tax plans — which would sharply cut corporate and business taxes and eliminate numerous deductions for individuals — come at precisely the wrong time. Lower taxes could also be undercut by Federal Reserve policymakers, who are gradually raising interest rates, they say.

House and Senate Republicans have now passed two different versions of a sweeping tax overhaul. Their next step is to iron out differences between the two bills, so the final product can be sent to the president to be signed into law.

Updated Dec. 2 at 11:57 a.m. ET

The Senate narrowly approved a $1.4 trillion tax overhaul early Saturday morning following a day of procedural delays and frustration.

The legislation, which would cut the top corporate tax rate to 20 percent and lower taxes for most individuals, narrowly passed in a vote of 51-49. Tennessee Republican Bob Corker was the only Republican to vote against the legislation, joining every Democrat and both independents in opposing the sweeping overhaul of the nation's tax laws.

Senate Republicans have begun debate on their bill to overhaul the nation's tax code. Many GOP members sound hopeful about passing their tax bill, possibly in a matter of hours. But they aren't there yet. To pass, 50 of the 52 GOP senators need to support the legislation. As the bill is debated on the Senate floor Thursday, several amendments are expected to try and get their support.

Here's what to watch for:

ANWR Drilling

President Trump traveled to St. Charles, Mo., on Wednesday to promote the GOP tax plan now facing a possible vote in the Senate by the end of the week. He also spoke more generally about his record during his first year in office. "I will tell you this in a non-braggadocious way," Trump said. "There has never been a 10-month president that has accomplished what we have accomplished."

Here's a closer look at some of the president's claims.

CLAIM: The GOP tax plan is primarily aimed at workers on the lower rungs of the income ladder.

Republicans lawmakers are considering a federal budget "trigger" that would raise taxes if proposed tax cuts don't deliver the economic growth they have promised.

But the proposal is generating a lot of pushback from critics, especially conservatives.

The so-called trigger mechanism would be a legislative provision to rescind corporate tax cuts by as much as $350 billion if revenue targets are not met, Bloomberg News reports.

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