Congress Sends Tax Bill to the White House
The Republican-controlled U.S. House of Representatives gave final approval on Wednesday to the biggest overhaul of the U.S. tax code in 30 years, sending a sweeping $1.5 trillion bill to President Donald Trump for his signature.
In sealing Trump’s first major legislative victory, Republicans steamrolled opposition from Democrats to pass a bill that slashes taxes for corporations and the wealthy while giving mixed, temporary tax relief to middle-class Americans.
The House approved the measure, 224-201, passing it for the second time in two days after a procedural foul-up forced another vote on Wednesday. The Senate had passed it 51-48 in the early hours of Wednesday.
Trump had emphasized a tax cut for middle-class Americans during his 2016 campaign. At the beginning of a Cabinet meeting on Wednesday, he said lowering the corporate tax rate from 35 percent to 21 percent was “probably the biggest factor in this plan.”
Trump planned a tax-related celebration with U.S. lawmakers at the White House in the afternoon but will not sign the legislation immediately. The timing of the signing was still up in the air.
After Trump repeatedly urged Republicans to get it to him to sign before the end of the year, White House economic adviser Gary Cohn said the timing of signing the bill depends on whether automatic spending cuts triggered by the legislation could be waived. If so, the president will sign it before the end of the year, he said.
The debt-financed legislation cuts the U.S. corporate income tax rate to 21 percent, gives other business owners a new 20 percent deduction on business income and reshapes how the government taxes multinational corporations along the lines the country’s largest businesses have recommended for years.
Millions of Americans would stop itemizing deductions under the bill, putting tax breaks that incentivize home ownership and charitable donations out of their reach, but also making tax returns somewhat simpler and shorter.
The bill keeps the present number of tax brackets but adjusts many of the rates and income levels for each one. The top tax rate for high earners is reduced. The estate tax on inheritances is changed so far fewer people will pay.
Once signed, taxpayers likely would see the first changes to their paycheck tax withholdings in February. Most households will not see the full effect of the tax plan on their income until they file their 2018 taxes in early 2019.
In two provisions added to secure needed Republican votes, the legislation also allows oil drilling in Alaska’s Arctic National Wildlife Refuge and repeals the key portion of the Obamacare health system that fined people who did not have healthcare insurance.
“We have essentially repealed Obamacare and we’ll come up with something that will be much better,” Trump said on Wednesday.
“Pillaging”
Democrats have called the tax legislation a giveaway to the wealthy that will widen the income gap between rich and poor, while adding $1.5 trillion over the next decade to the $20 trillion national debt, which Trump promised in 2016 he would eliminate as president.
“Today the Republicans take their victory lap for successfully pillaging the American middle class to benefit the powerful and the privileged,” said House Democratic leader Nancy Pelosi.
few Republicans, whose party was once defined by its fiscal hawkishness, have protested the deficit-spending encompassed in the bill. But most of them have voted for it anyway, saying it would help businesses and individuals, while boosting an already expanding economy they see as not growing fast enough.
“We’ve had two quarters in a row of 3 percent growth,” Senate Republican leader Mitch McConnell said after the Senate vote. “The stock market is up. Optimism is high. Coupled with this tax reform, America is ready to start performing as it should have for a number of years.”
Despite Trump administration promises that the tax overhaul would focus on the middle class and not cut taxes for the rich, the nonpartisan Tax Policy Center, a think tank in Washington, estimated middle-income households would see an average tax cut of $900 next year under the bill, while the wealthiest 1 percent of Americans would see an average cut of $51,000.
The House was forced to vote again after the Senate parliamentarian ruled three minor provisions violated arcane Senate rules. To proceed, the Senate deleted the three provisions and then approved the bill.
Because the House and Senate must approve the same legislation before Trump can sign it into law, the Senate’s late Tuesday vote sent the bill back to the House.
Democrats complained the bill was a product of a hurried, often secretive process that ignored them and much of the Republican rank-and-file. No public hearings were held and numerous narrow amendments favored by lobbyists were added late in the process, tilting the package more toward businesses and the wealthy.
U.S. House Speaker Paul Ryan defended the bill in television interviews on Wednesday morning, saying support would grow for after it passes and Americans felt relief.
“I think minds are going to change,” Ryan said on ABC’s “Good Morning America” program.
Reporting by David Morgan and Amanda Becker; Additional reporting by Richard Cowan, Roberta Rampton, Gina Chon and Susan Heavey; Editing by Jeffrey Benkoe and Bill Trott.
Comcast to Cut the Cord with Time Warner
Comcast is dropping its merger with Time Warner after a year of regulatory pushback, according to Bloomberg. The news wire's unnamed sources say there will be an announcement tomorrow.
In today's changing media landscape it is not really clear what the preemptive breakup of a media megacorp (formed from mere media titans) will mean for consumers, especially in the face of Verizon's push to slim down its bundled offerings, the new ala carte service from HBO and the continued expansion of Netflix's original programming. As more and more people cut the cord, the market for traditional cable TV is eroding, and more consumers opt simply for an Internet connection.
Even without that, Comcast dropping its deal probably will have no impact at all for the average cable subscriber, given the already segregated monopolies allowed individual cable companies. So, unless you own stock in either of these companies, this is pretty much just more status quo in a rapidly changing market.
Can Low Self-Control Turn You Into Edward Snowden?
Be very wary if your employer asks you to take a test and then says please put on this cap. The cap could have sensors measuring your “self-control,” which researchers at Iowa State University have connected to—cybersecurity.
Yup—this wasn’t about eating the last cookie, having sex with a stranger, or taking a hit from some unknown new drug just because your friend said it was an amazing experience. The test measures how long someone hesitates before doing something risky or wrong.
Hmm. Maybe I’ll wait a few seconds before robbing that jewelry store! If they waited, the researchers determined that the employees were considering the consequences of their actions and therefore had higher self-control than those who simply filled their duffle bag with whatever bling was in sight.
Those with higher self-control were deemed better cyber security risks than the low self-control group.
But who knows? Maybe the high group was just casing the joint and calculating how much they could carry without getting caught. Or maybe they were searching for the largest unflawed diamond in the case that could be hidden in their pocket!
So much for brainwaves.
These Students Are Making Even More Than They Expect After Graduation
College students who major in STEM fields generally know that they can make more money than their peers once they graduate, but they don’t know how much more.
Turns out, those students majoring in science, technology, engineering and math, actually have starting salaries that are higher than expected, according to a new report by the National Association of Colleges and Employers.
Engineering majors, for example, expect to earn $56,000, but actually receive 15.5 percent more than that, with starting salaries average nearly $65,000. Computer Science majors expect to make around $51,000, but receive 22 percent for an average starting salary of $62,000.
Chemistry majors have the largest gap between expectations and reality: They expect to earn an average of $39,000 but take home an average $58,000 in their first year, a 51 percent increase.
Related: The Closing of the Millennial Mind on Campus
The typical college graduate in 2014 received a starting salary of $48,000. Liberal arts and humanities majors had the lowest starting salary, with an average of just $39,000, according to NACE.
Not only do STEM majors enjoy higher salaries, but they can also expect more job security and better job prospects. All of the top 25 jobs recently compiled by U.S. News and World Report fell into either a science- or math-based discipline.
Still, not everyone has the interest or aptitude to excel in a STEM career. A third of those who begin their college career majoring in those fields end up transferring to a difference study area, according to a recent report by RTI International.
Will Obama Send a Smoke Signal About Weed?
The resignation of Michele M. Leonhart, chief of the Drug Enforcement Administration, just one day after 4/20 -- which is sort of Thanksgiving for stoners -- offers President Obama an opportunity to replace her with someone who shares his relatively benign view of marijuana.
The right appointment might also be a gift to Hillary Rodham Clinton since it would signal to younger voters that it's not just libertarian-leaning Republicans like Senator Rand Paul of Kentucky who want to decriminalize the use of pot.
Representative Early Blumenauer, an Oregon Democrat, told The New York Times that Obama should appoint someone who "understands the federal approach to marijuana isn't working."
Related: How to Stop Cyber Attacks: Let Workers Smoke Pot
The flashpoint that led to the departure of Leonhart after a 35-year career at the D.E.A. was a congressional hearing that revealed agency agents in Colombia had taken part in parties with prostitutes paid by drug cartels. But Leonhart, who has lumped marijuana in with crack, meth and heroin, found herself at odds with the President, who has called pot no more dangerous than alcohol.
“Hopefully this is a sign that the Reefer Madness era is coming to an end at the D.E.A.,” Mason Tvert, the director on communications at the Marijuana Policy Project, told Bloomberg Politics.
How to Stop Cyber Attacks: Let Workers Smoke Pot
What’s true for the government is true for business. FBI Director James Comey thinks you can’t hire top tech talent with a ban on weed. It all started in the Reagan administration, which imposed a no-hire policy for applicants who toked up within the past three years. Good luck with that.
In 2014, Comey raised the issue during a speech: “A lot of the nation’s top computer programmers and hacking gurus are also fond of marijuana. I have to hire a great workforce to compete with those cyber criminals and some of those kids want to smoke weed on the way to the interview.”
That’s not the only reason the government can’t hire competent programmers and white hat hackers. They come at a high price, there’s a shortage, and they hate red tape and bureaucratic annoyances. For some lawmakers, though, it’s easier to get lost in the weed than try to reform the federal hiring process. That’s why Gerry Connolly (D-VA) and Earl Blumenauer (D-OR) have two proposals in the House requiring info from the intelligence director on how classifying pot as Schedule 1 narcotic crimps the feds recruiting efforts.