TAX PLAN UPDATE – AT 1:18 P.M. ET:   Despite all the trauma of recent weeks, work is proceeding on a new U.S. tax system.  From CNBC: 

House Republicans are leaning toward setting a higher tax rate for wealthy Americans than the one outlined in the framework unveiled by the White House and GOP leadership last week.

That plan called for consolidating the current seven tax rates into just three — 12, 25 and 35 percent. However, it gave lawmakers the option of adding a fourth rate to ensure that high-income households do not receive the biggest benefits—and a senior Republican said they are "highly likely" to take it.

The Republican, who spoke on the condition of anonymity to discuss internal negotiations, said the precise rate has not been determined. But, the person said, it will not be higher than the current top rate of 39.6 percent.

Publicly, top Republicans in both chambers have pointed to the possibility of a fourth rate to deflect criticism that their tax plan primarily helps the wealthy. Senate Finance Committee Chairman Orrin Hatch of Utah attacked a recent study by the nonpartisan Tax Policy Center that found half of the tax benefits in the GOP proposal would accrue to the wealthy. Speaking at a hearing on Tuesday, Hatch said that no numbers have been finalized and called the report a "blank-filling exercise designed to cast the framework in the worst possible light."

"The framework does not include any specific information about things like the break points for the individual tax brackets, the value and indexing of the enhanced child tax credit, or the precise rate for the top bracket," Hatch said. "Without those and other key pieces of information, there is simply no way for any outside party to produce a credible analysis of the framework, let alone a detailed estimate of revenue and the distribution of tax burden."

House Speaker Paul Ryan last week said the goal of tax reform is to help the middle class—and suggested the fourth rate could play a key role in fulfilling that promise.

COMMENT:  At least the boys are at work.   We must have a new tax code.  First, the American people need it.  Second, it will be very important in keeping Republican control of Congress next year.  The Republicans might not be legislative stars right now, but the Democrats are beneath contempt – not even a political party, merely a set of interest groups ready to raid the Treasury.

October 4, 2017