Flynn's Resignation Delays Tax Reform, Buys More Time for Taxpayers to Influence Congress

Feb 14th, 2017

"Last Thursday, Trump, facing doubts about the speed of his promised tax reform, said he will make a 'phenomenal tax announcement' in a few weeks."

"The White House disarray after National Security Advisor Michael Flynn resigned could cause delays for corporate tax reform, CNBC's Jim Cramer said on Tuesday."

CNBC

While it is generally agreed upon that tax reform is due, many Americans have expressed serious concerns with the House Ways and Means Committee's tax reform proposalsFarmers and small businesses, mom and pop property owners, retirement-age property owners, and others would be directly hurt, although many analysts say the proposed reform would slam the entire economy. Voters who haven't yet expressed their concerns to Congress are now being afforded more time to do so.

[CLICK HERE and fill out the form to send your own representative and senators a letter, urging them to #StopBillionaireBailouts!]

It is being reported that the House intends to kill two historic protections for for working class—like-kind exchange and business interest deductions—in order to reduce the taxes that the wealthiest 0.01% of the population pays, including, for example, hedge-fund managers—a group that is already so wealthy and so privileged by the current rules that even Donald Trump recognizes them as under-taxed!

The like-kind exchange (or "1031 Exchange") protects taxpayers from having to come out of pocket to pay taxes whenever they swap properties (any income that is actually received during these swaps is already taxed). The 1031 Exchange has many applications and is even used to further environmental protection objectives, such as through swaps involving conservation easements to preserve habitat and prevent future development.

The business interest deduction protects taxpayers from paying taxes on the fees they are already paying out to large banks for the money they borrow to help them start their businesses, buy inventory, and pay their employees. Currently the lenders pay the taxes on that money because they receive it as income, whereas it is an expense to the borrowers. The House tax reform blueprint reverses this, allowing banks to deduct their interest expenses against that interest income while taxing borrowers on the interest they pay to the banks!

This new tax break for the wealthiest 0.01% is so massive that, even after introducing these two new taxes on the middle class, it would still cause the federal debt [to] rise ... by at least $6.6 trillion by the end of the second ten years, according to a think tank founded by tax policy specialists who served in the Ronald Raegan administration.

It's not too late to oppose this bill! Sending a letter is one of the most powerful ways to influence Congress. Join the movement to #SaveThe1031 and #StopBillionaireBailouts today.

[CLICK HERE and fill out the form to send your own representative and senators a letter, urging them to #StopBillionaireBailouts!]