federal taxes

Haslam: GOP tax bill will bring more immigration to TN from other states

Gov. Bill Haslam says more people from states such as New York,  New Jersey and California are likely to move to Tennessee with enactment of a Republican federal tax package that eliminates current deductions for payment of state and local taxes, reports the Murfreesboro Daily News Journal.

As Haslam explains it, those living in states with higher tax rates currently see a greater federal tax deduction. Residents in Tennessee, a low-tax state, don’t benefit as much from the state and local tax deduction.

“That changes now,” Haslam said, speaking Monday at Nissan’s Smyrna plant. “A lot of people who live in states with income tax of 10 or 12 percent start going, ‘Huh, well, only having to pay half is not such a bad deal, but if I’m having to pay all of it, maybe I’d be better off in Tennessee.’ We think it actually will encourage both investment growth and population growth in Tennessee.”

William Fox, an economist at University of Tennessee Knoxville, said research shows  tax rates can affect where people leave, but the impact is small. And there are several caveats to keep in mind with that calculation. Taxes pay for services, so when changing residences, an individual may also be giving up tax-funded services they enjoy.

“There is a small impact of taxes on where people live,” Fox said. “With the elimination of the deductibility, you make it more expensive to live in high-tax states.”

Another point to keep in mind, Fox said, is that the elimination of state and local tax deductions only affects those who itemize tax returns. Thirty percent of taxpayers itemized deductions in 2014, according to the Tax Policy Center. For those individuals, ending the state and local tax deduction would make Tennessee more attractive, he said.

Black appointed to House-Senate conference committee on tax legislation

Press release from U.S. House Budget Committee

Washington, D.C. – House Budget Committee Chairman Diane Black issued the following statement after the U.S. House of Representatives voted on a motion to go to conference with the Senate in order to deliver tax reform for the first time in more than three decades. Chairman Black has been appointed by Speaker Paul Ryan to serve on the conference committee.

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Corker casts sole GOP no vote on Senate tax bill

Tennessee’s Sen. Bob Corker cast the only Republican no vote on federal tax overhaul legislation that passed the U.S. 51-49 early Saturday. The next step is for House and Senate Republicans to iron out their differences over the bill.

Insofar as Corker, goes, here is an excerpt from a CNN story:

Corker had made his support contingent on leaders including a trigger in the bill that would generate automatic tax cuts in the event the tax bill didn’t get the anticipated growth. But after reworking the proposal several times, the Senate parliamentarian ruled that the trigger wouldn’t pass Senate rules that allowed Republicans to pass their tax bill along a party-line vote. Corker then demanded $350 billion in additional cuts his colleagues weren’t ready to give him.

But even Corker, who had left aides and colleagues fuming Thursday night with a dramatic showing on the Senate floor that included him huddled around the Senate’s parliamentarian and GOP leaders for more than hour, offered conciliatory remarks Friday morning at a closed-door GOP conference meeting.

According to two GOP sources, Corker moved to de-escalate the situation that angered his colleagues Thursday night, saying he was happy the party was on the precipice of passing their tax bill even if he wasn’t going to be with them. Republican leaders as of Friday morning were still trying to win his support, but sources acknowledged the reality: the decision had been made to cut him loose. They had the votes without him.

Press release from Sen. Bob Corker (issued prior to the vote):

WASHINGTON – U.S. Senator Bob Corker (R-Tenn.) today (Friday) released the following statement.

“My concern about the impact a rapidly growing $20 trillion national debt will have on our children and grandchildren has been a guiding principle throughout my time in public service. And during my 10 years and 11 months in the Senate, I have consistently fought for fiscal discipline in Washington.

“I have authored comprehensive legislation to address America’s debt crisis, including the Commitment to American Prosperity (CAP) Act and the Fiscal Sustainability Act. I also have taken some really tough votes against very popular policies, including appropriations bills, budget resolutions, defense authorizations, disaster funding, and even a veterans’ bill. 

“But at the same time, I have consistently advocated for pro-growth tax reform. And in my view, these are not mutually exclusive priorities.

“From the beginning of this debate, I have been a cheerleader for legislation that – while allowing for current policy assumptions and reasonable dynamic scoring – would not add to the deficit and set rates that are permanent in nature.

“I worked closely with Senator Toomey to negotiate the budget agreement that paved the way for this legislation. And I have worked diligently over the past few weeks with Senate leadership and the White House to make improvements.

“While I support a number of the provisions included in this legislation and continue to believe it would have been fairly easy to alter the bill in a way that would have been more fiscally sound without harming the pro-growth policies, unfortunately, it is clear that the caucus is in a different place.

“This is yet another tough vote. I am disappointed. I wanted to get to yes. But at the end of the day, I am not able to cast aside my fiscal concerns and vote for legislation that I believe, based on the information I currently have, could deepen the debt burden on future generations.

“I thank the administration, Senate leadership, and members of the tax-writing committee for working with me in good faith, and as I shared with President Trump when I called him a short time ago, I will take a close look at the product developed in conference before making a decision on the final legislation.”

Corker gets requested revision and votes for Senate GOP tax bill; Alexander involved with Obamacare deal

The Senate Budget Committee voted to advance the GOP tax reform bill on Tuesday on a party-line vote, with both Sens. Bob Corker (R-Tenn.) and Ron Johnson (R-Wis.) backing the measure a day after threatening to withhold their support, reports Politico.  That critical vote came after President Donald Trump came to Capitol Hill to rally the troops in the tax battle.

Johnson voted for the tax bill after a back-and-forth with Trump during the lunch, according to multiple sources, over the Wisconsin Republican’s main concern: that the proposal currently gives more benefits to corporations than to businesses that pay taxes through the individual system.

… Corker, one of the fiscal hawks concerned about the deficit impact of tax cuts, said he was satisfied with details for a “trigger” to reverse tax cuts if economic growth fell short of projections in years to come. He expects details to be released Thursday.

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