Thread by @NGrossman81

(THREAD) Epic screw-up in the tax bill the Senate just passed.
They lowered the corporate rate to 20%, but accidentally put in an alternative minimum tax (AMT) of 20%.
That's right. The same rate.
(Maybe rushing it through wasn't the best idea).
Here are some implications:

Turns out Republicans passed something like actual corporate tax reform. It effectively wiped out a bunch of deductions (since claiming them doesn't result in savings) and lowered rates.
Companies will compete based on who has the best business, not who has the best lobbyists
2/x

But companies are pissed. Especially well-connected companies that got the government to give them special tax breaks.

Real tax reform is a great idea. But that wasn't Republicans' main goal.

Now the bill doesn't funnel nearly as much money to rich people as they thought.

3/x

That means the Senate has to pass another tax bill. Lower the corporate rate *and* makes sure they can keep their tax breaks.
Of course, they could roll with real tax reform instead. That would help the countr-- ah, who am I kidding?
4/x

It wasn't easy to sneak the tax bill through the Senate. They had to refuse hearings and expert testimony, make changes by hand, and pass it quickly.
For comparison, Obamacare took over a year, left months between committee and floor votes, and had 44 Senate hearings.
5/x

To send a bill to the president, House and Senate must pass identical versions.
Republicans could have avoided the gamble of putting up another bill for a Senate vote by having the House pass the Senate version.
That's what Democrats did with Obamacare after Ted Kennedy died.
6/x

But the epic screw-up--reinstating an AMT but accidentally making it the same as the normal rate--means the House can't pass the Senate version.
Well, they could. But then it wouldn't funnel as much money to people with a lot of money. Plus there are other, lesser screw-ups.
7/x

There's going to be another Senate vote on the tax bill.
Republicans could write a better bill. Maybe something like Reagan's 1986 bipartisan tax reform.
If not, Americans who disagree with Republicans' current approach to taxes have another shot to stop them.
8/x

Meanwhile, government funding is almost out. Because some Republicans won't vote for a spending bill without large cuts first, avoiding a shutdown requires Democratic votes.
That gives Democrats leverage.
And a shutdown means no votes on normal business, including tax bills.
9/x

In trying to rush their overhaul of the tax system, Senate Republicans accidentally passed something that angers, rather than pleases many of their donors.
They almost certainly won't be able to pass something this year.
If you want to fight about it, you've still got time.
(END)