Page 25 - ARUBA TODAY

BUSINESS Monday 23 april 2018
A25

Insider Q&A: The inherent limits of temporary tax cuts

By MARCY GORDON for individuals are set to can bring permanency to
WASHINGTON (AP) — The expire in 2026. What does the tax code by making all
tax overhaul that took ef- that mean for the ordinary the provisions permanent.
fect Jan. 1 provides gener- taxpayer? But this is unsustainable.
ous breaks for corporations It's a problem because tax- We already have revenues
and wealthy Americans payers want to have some that are way too low to
and more modest relief for certainty when they're do- pay for the investments we
middle- and low-income ing their taxes. So each need. We're going to have
households. In addition, the year you want to know that trillion-dollar deficits starting
tax cuts for corporations your taxes are going to be very soon.
are permanent; those for roughly the same as they I think it's unlikely that this
individuals and families are were last year, or if they've year there'll be passage of
only temporary. changed, you know why. this in Congress, because
Richard Phillips is a senior But with this new law, many the Republicans need at
policy analyst at the non- taxpayers won't know if a least nine Democrats in the This undated photo provided by the Institute on Taxation and
partisan, liberal-leaning given provision they de- Senate to vote with them Economic Policy shows Richard Phillips.
Institute on Taxation and pend on is there from one to pass it. But if Republicans Associated Press
Economic Policy. The fol- year to the next. keep control of the House
lowing interview was ed- ___ and extend their control tradition of passing short- and television production.
ited for length and clarity. Some officials have said in the Senate in the com- term extensions of specific This is a bipartisan problem.
___ the Trump administration ing elections, there's a real tax breaks. You say the real The live theater tax break is
You've said the new tax supports making the indi- chance they could pass a purpose is to hide their true connected with Democrat-
law failed to achieve a vidual tax cuts permanent. bill without any Democrats' long-term cost to the defi- ic Senate Minority Leader
minimum goal: To reduce How do you envision the votes and make all the indi- cit. What are some exam- Chuck Schumer from New
the provisions that are only prospect of that happen- vidual cuts permanent. ples of "extenders" being York. And the racehorse tax
temporary. The law actu- ing in Congress? And what ___ driven by special interests? break is associated with Re-
ally greatly expanded the would be the impact on You've criticized the prolif- There's the tax break for publican Senate Majority
number of temporary provi- the deficit? eration of "tax extenders" racehorse owners. And the Leader Mitch McConnell,
sions; nearly all the tax cuts There's an idea that we — Congress' nearly annual break for live theater, film who's from Kentucky.q
DOJ looks into how AT&T, Verizon handle defecting customers

tion. The company said concerns. That battle cen- cable TV and digital video
it "will continue to work ters mostly on the future of streaming.q
proactively within GSMA,
including with those who
might disagree with the
proposed standards, to
move this issue forward."
GMSA and the Justice De-
partment declined to com-
ment.
News of the probe emerge
during a trial of the Justice
This Wednesday, Feb. 8, 2017, file photo shows the AT&T sign at Department's case seeking
a store in Hialeah, Fla. to block AT&T's its proposed
Associated Press $85 billion merger with Time
Warner to over antitrust
NEW YORK (AP) — The into their phones.
Justice Department has The Times, citing six anon-
opened an antitrust inves- ymous people familiar
tigation into whether AT&T, with the inquiry, reported
Verizon and a standards- that the investigation was
setting group worked to- opened after at least one
gether to stop consumers device maker and one oth-
from easily switching wire- er wireless company filed
less carriers. complaints.
The companies confirmed Verizon, which is based in
the inquiry in separate New York, derided the ac-
statements late Friday in cusations on the issue as
response to a report in The "much ado about nothing"
New York Times. in its statement. It framed
The U.S. government is its efforts as part of attempt
looking into whether AT&T, to "provide a better experi-
Verizon and telecommu- ence for the consumer."
nications standards or- Dallas-based AT&T also de-
ganization GSMA worked picted its activity as part
together to suppress a of a push to improve wire-
technology that lets peo- less service for consumers
ple remotely switch wireless and said it had already
companies without having responded to the govern-
to insert a new SIM card ment's request for informa-