House votes to make individual tax breaks permanent

Rep. Kyrsten Sinema, D-Ariz., one of the three Democrats who voted for today’s bill but opposed last year’s tax reform law, explained her vote as correcting a fault in the law.

“One of my complaints and concerns about [last year’s] bill, was that it didn’t make permanent tax cuts for middle class families and small businesses, and today the bill addressed that,” Sinema, who is locked in a tight race for Senate, told the Washington Examiner immediately after today’s vote.

Last year’s law has not been as popular as Republicans hoped. An average of polls on the issue aggregated by RealClearPolitics shows more opposition than support for the law.

Still, Republicans defended their signature achievement of this nearly-finished Congress as an issue they could turn into a positive on the campaign trail.

“I think the misleading claims out there have taken hold,” said Rep. Kevin Brady, R-Texas, chairman of the House Ways and Means Committee that wrote today’s bill and much of last year’s law. “But American families are seeing a much different view of this tax cut and certainly on the economy, everyone feels so much more optimistic about their job prospects.”

Rep. Mike Bishop, R-Mich., a two-term Republican in a potential swing district whose Democratic opponent’s campaign has raised more money than him, also said he viewed last year’s tax law as a political positive.

“It’s very much a positive issue for all of us,” said Bishop. “I don’t know anyone that’s been attacked for tax reform. I haven’t been in my campaign. I think that there’s a consensus that it’s positive all the way around.”

But Republicans were only cautiously optimistic that today’s bill would pass the House. Last year’s tax reform bill saw some GOP defections, and supporters of today’s bill were wary of more defections from Republicans who might take a symbolic vote against the bill over concerns about the rising national debt, or those in swing districts who might switch their vote due to political considerations.

The cap on federal deductions individuals can take on state and local taxes, which last year’s law set at $10,000 per year, has proven to be a dicey issue for congressional Republicans in higher-tax areas or states. Democrats in those states, such as California, have taken the offensive against Republicans who voted for the provision, known by its acronym as the ‘SALT cap’.

Under the cap, some in those states will see a net-tax increase from that provision, which Democrats argue is unfair to local governments. Several Republicans from those areas voted against last year’s tax law for that reasons, and those same Republicans opposed today’s bill because it would make that cap permanent.

Democrats uniformly opposed today’s bill and continued to complain about the law and the process under which it came about.

“The GOP’s priorities have been laid bare,” said House Minority Leader Nancy Pelosi on the House floor. ““How can we milk the public, exploit the taxpayer by adding to the wealth of the wealthiest one percent?’” she asked.

Though today’s legislation could be last minute fodder for campaigning, it’s unlikely to become law. The Senate is not expected to take up the bill, and even if it did, it would need 60 votes to advance, which means at least nine Democrats would have to support it.

Despite that, Brady sounded upbeat that progress could be made on at least some of the ‘Tax Reform 2.0’ package of three bills that the House passed today and yesterday. Brady said he hoped to negotiate with senators to pass measures with bipartisan agreement into law during Congress’s post-midterms lame-duck session.

“It’s encouraging to receive 42 Democrat votes to support for the three elements of ‘Tax Reform 2.0,'” Brady told reporters after today’s vote. “I’m confident that working with the Senate we can advance some of these bipartisan bills to the president’s desk this year.”