New Majority Speaker Paul Ryan (R-Wis.) cleared the first major challenge of his tenure on Friday, shepherding the $1.1 trillion bill through the House with bipartisan support. Later in the morning, the bill passed through the Senate and is expected to be signed by President Obama.
Allowing oil to be exported for the first time in 40 years is among the headline wins for Republicans, along with delays to the implementation of several healthcare-related taxes meant to provide additional funding for the Affordable Care Act. On the other side of the aisle, secured Democrat priorities include the continuation of tax breaks for solar and wind energy, as well as continued federal funding for Planned Parenthood.
Meanwhile, retired Daily Show host Jon Stewart succeeded in his public battle to secure the reauthorization and expansion of healthcare funding for 9/11 responders, many of whom are suffering from critical illnesses.
What’s in It for Us?
A key aspect of the deal was the making permanent of a long list of previously temporary tax breaks that constantly needed to be renewed. While this system allowed for flexibility on the part of lawmakers, it also made it nearly impossible for individuals and businesses to effectively plan medium- and long-term budgets.
“Finally with this tax bill, families and businesses are going to have the long-term certainty that they need instead of scrambling year after year to find out what’s next,” said Ryan.
The list of permanent tax cuts includes favorites from both sides, although there are two that should stand out to millennials.
First and foremost, tax breaks for college students is here to stay — rejoice poor suckers using holiday gift money to pay for student loans. The American Opportunity Tax Credit (AOTC) allows for filers to claim up to $2,5000 annually in order to help offset specific education expenses.
What’s more, a research and development tax credit for businesses has not only been made permanent, but it’s been expanded to better include small businesses. This is needed relief for folks who are typically operating on tighter profit/loss margins than big businesses and usually lack the creative tax wizards who help bigger firms reduce their tax burden.
Our Take
A deal with compromises from both sides? Ryan and his counterpart, House Minority Leader Nancy Pelosi (D-Ca.), working together effectively? An embarrassing government shutdown avoided? A seemingly functional political system, even if but for one shining moment?
Sounds like the folks on Capitol Hill want to enjoy their holiday break just as badly as the rest of us. Thanks, Santa.
