Aerospace giant Boeing quickly praised passage of the GOP tax bill, promising $300 million in new charitable investments and workforce development.
"On behalf of all of our stakeholders, we applaud and thank Congress and the administration for their leadership in seizing this opportunity to unleash economic energy in the United States," said CEO Dennis Muilenburg in a statement released shortly after the bill passed the House on Wednesday morning. "It's the single-most important thing we can do to drive innovation, support quality jobs and accelerate capital investment in our country."
While it’s unknown how much of the $300 million will benefit Washington state’s Boeing workers, the company outlined a general description of how it would spend the money in a news release.
- $100 million for corporate giving, with funds used to support demand for employee gift-match programs and for investments in Boeing's focus areas for charitable giving: in education, in our communities, and for veterans and military personnel.
- $100 million for workforce development in the form of training, education, and other capabilities development to meet the scale needed for rapidly evolving technologies and expanding markets.
- $100 million for "workplace of the future" facilities and infrastructure enhancements for Boeing employees.
"This is the first of many investments in innovation, research and development, our infrastructure and in our most important strength, our people," said Boeing Senior Vice President of Communications Phil Musser.
Earlier this year, House Speaker Paul Ryan, R-Wisconsin, visited Boeing’s Everett plant to push his tax proposal.
A key component of the newly passed tax bill centers around slashing the corporate tax rate from 35 to 21 percent. Republicans argued the cut was necessary to make the United States more competitive with other countries in the industrialized world.
However, Democratic lawmakers have painted the bill as a win only for corporations and top earners. While most Americans will see a tax cut under the bill, the individual cuts expire in 2025, unless renewed. Analysis by the Wall Street Journal shows that less than 25% of individual tax cuts will go to the middle class.
Some of key changes in the tax bill:
Doubles standard deduction
- For individuals, the standard deduction will be increased from $6,500 to $12,000
- For single parents, the standard deduction will be increased from $9,550 to $18,000
- For married couples, the standard deduction will be increased from $13,000 to $24,000, according to White House
- Child tax credit increases to $2,000
- State and local deduction for state, local and property taxes capped at $10,000, potentially hitting high tax states like California, New York and New Jersey harder.
- Creates a 20 percent deduction for owners of pass-through businesses on qualified business income
- Caps deduction for mortgage interest a $750,000 in home loan value, for homes bought from Jan. 2018 through Dec. 31, 2025
- Repeals affordable care act individual mandate
- Allows for oil drilling in Alaska’s Arctic National Wildlife Refugee
KING 5 walked through some scenarios with a certified public accountant who also fact-checked the president's promise to a Tenino Wash. family last week.
CPA Greg White calculated their tax bill based on an assumption the family of four makes a gross income of around $87,000. Because of the increase in child tax credits and personal standard deductions, he found the family could potentially end up getting a refund of around $750. See document below for calculations.
Click through to see how the new plan would affect the family from Tenino, a single individual who rents and a home-owning family with two children.
“It’s hard to find somebody isn’t going to save a little bit of money," said White of the new tax bill.
However, he pointed out that families with children come out ahead over couples without children, or single individuals, in terms of tax savings.
"Someone without kids is going to be at a disadvantage and somebody who owns a home and isn’t going to get a lot of benefit from the increased standard deduction, they’re less likely to win," said White.
Related: How the tax cuts and jobs act could affect these 5 households via The Motley Fool
Democratic lawmakers point to analysis that reveals middle class families will end up paying more under the new plan, according to future projections in which the tax credits expire after 2025. Critics also worry about future spending cuts as a result of the new tax deal and a rise in premiums as a result of the repeal of the individual healthcare mandate.
Recent polling shows the tax plan is not popular with the public; only 24% of respondents thought the bill was a good idea.
Washington state's delegation passed the GOP tax bill along party lines. Members have released the following statements:
Sen. Patty Murray, D-Wash.
“From the very start, President Trump and Republicans shut out Democrats, nonpartisan experts, and the vast majority of Americans because they knew this legislation would never survive the light of day," Murray said. "The result of their closed-door negotiations is a terribly partisan bill that funnels even more money to those at the very top, at the expense of hardworking families and future generations.
“From the millions of Americans who will lose health coverage or see their premiums go up, to the middle class families who will see their tax bill increase in the coming years, to the pristine region of Alaska that will open to drilling, it’s hard to overstate the cruelty of the Trump-Republican bill. It’s also hard to overstate the hypocrisy of so-called fiscal conservatives who apparently didn’t think twice about blowing a massive hole in our deficit and endangering Social Security, Medicare, and Medicaid -- all so they could dole out more tax cuts to the ultra-wealthy and the Trump family."
Rep. Suzan DelBene, D-1st District
“In this Ryan-McConnell tax bill, Republicans have gifted the wealthiest corporations and individuals with massive new tax cuts and loopholes to take advantage of,” DelBene said. “Not a mother working two jobs to put food on the table, not a farmer struggling through a bad year, not a senior trying to pay for a prescription, have ever told me that tax reform means corporate cuts on the backs of them and their families. Republicans always promise that the benefits will trickle down to working people, but they never do and they never will. And what’s worse, they’ve made it clear cuts to Social Security, Medicare and Medicaid are next.
“Instead of bringing Democrats and the public into the process, Republicans worked behind closed doors to take care of their corporate special interest allies, the wealthy and the well-connected, while putting middle-class Americans’ finances and healthcare on the chopping block.”
Rep. Rick Larsen, D-2nd District
“Once again, Congressional Republicans have put the interests of corporations and the wealthy ahead of what is best for hardworking American families. The latest partisan tax package will still drastically raise the deficit by $1.5 trillion, increase taxes on veterans and the middle-class, and deny vital comprehensive health coverage to over 39,000 Washingtonians in the district I represent," said Larsen in a statement.
“I stand with my constituents who have called, sent letters, attended community coffees or otherwise made their voices heard about the harm this Republican tax bill would cause. Like the U.S. military retiree in Oak Harbor, who worries about how the GOP tax scam jeopardizes the retirement they have worked a lifetime for by raiding Medicare funds; the couple in Lynnwood who is concerned about the impact of the reduced mortgage interest and SALT deductions on their property value under the new bill and; the low- and middle income families throughout Washington state’s Second District who will struggle to make ends meet once the bill’s temporary, modest tax cuts end.
“Real bipartisan tax reform should simplify the tax code, support middle-class families and veterans, strongly invest in infrastructure, foster more well-paying jobs, and ensure access to affordable, high-quality health care."
Rep. Jaime Herrera Beutler, R-3rd District
“Once this tax cut bill is signed into law, the average Southwest Washington family of four will keep $2,385 more of what they earn,” said Herrera Beutler.
“The bill we passed today improves on the earlier version I voted for in several measurable ways for folks in all phases of life – from those preparing to begin their careers, to those in retirement. It protects virtually every middle-class homeowner by raising the mortgage interest deduction to $750,000, it expands vital relief for those families with high medical expenses, it doubles the child tax credit, and reinstates protection for all state and local taxes up to $10,000. I’m pleased that graduate students preparing to enter the workforce will have reduced tuition exempted from taxes – another improvement from our earlier bill. For those planning for retirement, popular savings accounts such as IRA’s and 401(k)s are preserved, and relief from the death tax that inhibits passing small family businesses and farms to the next generation is doubled. For the 75 percent of Southwest Washington taxpayers who use standard deduction, they will now see nearly double the amount of their money protected from taxes, and even more taxpayers will now be able to take advantage of the standard deduction.”
Rep. Dan Newhouse, R-4th District
“As Republicans, we promised a unified plan to reduce the burden of taxes and government mandates on American families and businesses, and that is exactly what we have delivered,” said Newhouse. “Today, we passed the first major pro-growth, pro-family tax reform in 31 years. Doubling the standard deduction—which is used by eighty percent of filers in the Fourth Congressional District—and increasing the child tax credit will provide real relief for working families in Central Washington. Additionally, this bill is a win for small businesses and farmers by allowing them to immediately write off the full cost of new equipment and increasing those who are shielded from the unfair death tax which allows more family farms and small businesses to pass on the success of a lifetime of hard work to the next generation. We promised to remove the individual mandate, which is an unfair tax penalty that hits middle-income families in the Fourth District. With this major reform, that Obama-era burden will be removed once and for all.”
Rep. Cathy McMorris Rodgers, R-5th District
"For people in Eastern Washington, I often hear families and individuals say that they feel like they are working harder and harder but falling behind," said McMorris Rodgers. "I'm excited about what the Tax Cuts & Jobs Act means for them."
Rep. Derek Kilmer, D-6th District
“Today’s vote is an enormous missed opportunity. Done right, tax reform could help grow our economy, give small businesses a boost, and make it easier for middle class families to get ahead,” Kilmer said. “Instead, this bill raises taxes on 86 million middle-class families while giving 83 percent of the tax cuts to the wealthiest one percent and adding more than $1.5 trillion to the debt that our kids will have to pay off.”
Rep. Pramila Jayapal, D-7th District
“The GOP tax scam bill is an all-out war on any idea of opportunity in this country. It’s a massive tax break for the ultra-wealthy on the backs of middle class families. It’s outrageous that Republicans in the House voted to pass this love letter to their largest donors and corporations.
“Despite overwhelming opposition from the American people, this tax scam dismantles the Affordable Care Act, throwing 13 million people off their health care. It eliminates most of the State and Local Tax deduction, short-changing communities and resulting in as much as $152 billion in cuts to education funding over the next decade. It runs up the deficit anywhere from $1 trillion to $1.5 trillion, triggering cuts to Medicare and Medicaid. Despite what Republicans say, the fact of the matter is that 80 percent of all tax benefits in this bill go to the top one percent.
“With this heist, Republicans have branded themselves as the party of billionaires and giant corporations—they are robbing the American people and showing zero remorse,” said Jayapal in a statement.
Rep. Dave Reichert, R-8th District
“Today is truly historic,” Reichert said. “We accomplished something that has not been successfully done since 1986. We passed a tax bill to make our tax code work for the American people. It puts more money in your pocket through lower tax rates and an increased standard deduction. To grow wages and jobs here at home, we provide tax relief for businesses big and small. While I know these provisions will benefit the American people, I am deeply disappointed that this Conference report rejected my request to remove drilling in the Arctic National Wildlife Refuge from the bill. Through my years on the Ways and Means Committee, I have consistently evaluated each tax proposal on what it would mean for families and for our economic growth. I am proud to support this bill because it passes this test and I look forward to seeing America better off for it.”
Rep. Adam Smith, D-9th District
“The Republicans’ final tax bill affirmed my opposition to this dangerous proposal. Today’s vote increased the deficit by a staggering $1.5 trillion, which overwhelmingly benefits the rich and corporations at a time when we are running historic deficits and wealth is concentrated at the top. This bill was so partisan and poorly constructed, and the process so lacking, that Senate parliamentary rules required provisions to be dropped at the last minute, which required the House to vote on the bill twice.
This measure endangers Medicare and other mandatory programs, leaving them susceptible to drastic cuts that will hurt ordinary Americans. It will throw our health care system into chaos and even harms our environment by opening up the Alaska National Wildlife Refuge up for oil drilling. This bill set our government on an extremely irresponsible path and its negative effects will be felt by generations to come.”
Rep. Denny Heck, D-10th District
"When Congress began discussing tax reform earlier this year, I was optimistic about the possibility of meaningful change and bipartisan consensus. There is no question we need to simplify the individual and corporate tax codes by closing deductions and loopholes. These gaps in our tax code may be good for the wealthy and the large corporations who have dedicated experts to do their taxes, but for most families, these loopholes and deductions do not provide tax relief they need and deserve.
"Unfortunately, the bill that came up for a vote this week in the House is not tax reform; it is a government payout to the wealthy. Tax reform is difficult because it is budget-neutral, and for every give (usually lower rates), there is a take (usually closing loopholes). That process means some changes are welcomed by those who benefit while strongly opposed by others who may be negatively affected. The authors of this bill set out to do tax reform, but the hard choices were too tough.
"Instead of closing loopholes, this bill finances its tax cuts by borrowing $1.7 trillion.
"I object to that approach on two grounds: deficits and fairness. This tax plan explodes the deficit while being radically unfair to middle class families. Although the budget deficit shrank by 70 percent from 2009 to 2015, it is now growing again, and this bill radically accelerates that growth at an unsustainable rate. If we are going to borrow $1.7 trillion, why not give each American taxpayer their fair share of $5000 each? Instead, this bill leaves half of working families with little or nothing while giving 83 percent of the tax cuts to the top one percent of income earners."
Read Heck's full statement on Facebook.
