Senate Republicans are unveiling their own tax cut bill on Thursday, and like a House version it would slash rates by corporations and take away a deduction that is popular in high-tax states like New Jersey and California.
Senate Finance Committee Chairman Orrin Hatch, a Utah Republican, is set to unveil his version of the bill on Thursday.
Finance members and staff will brief the Republican conference on the cuts on Thursday in a closed meeting. The Senate bill would aim to raise the deficit by $1.5 trillion, the deficit increase set by the Republican budget.
Like the House bill, the Senate version would slash the U.S. corporate tax rate to 20 per cent from 35 per cent.
Senate Finance Committee Chairman Orrin Hatch, a Utah Republican, is set to unveil his version of the bill to his colleagues on Thursday
But the cut could come through after delay of a year, one of several tweaks meant to produce new revenue to fit within the allowable score and fund other priorities.
The Senate bill appears to go farther than the House in getting rid of the deductibility of state and local taxes.
The House bill, after lobbying by Republicans from high-tax states, limits the deduction on state and local property taxes to $10,000. It also repeals the deduction for state and local income and sales taxes.
House tax-writers kept the $10,000 limit in place after an uproar from Republicans who represent high-tax states.
Senate Minority Leader Charles Schumer of New York warned ‘every one’ of his suburban Republican colleagues in the House, ‘This bill could be your political doom.’
His warning came after Tuesday elections saw Republicans getting hammered in the suburbs as Democrats prevailed in the New Jersey and Virginia governors races.
GOP Sen. David Perdue said the Senate bill might repeal the entire state and local tax deduction, the Associated Press reported.
The House bill got a Congressional Budget Office score of $1.7 trillion.
Sen. John Cornyn of Texas told reporters about the briefing of GOP senators.
The Senate bill could likely reduce the number of income tax brackets from seven to four.
The House Ways and Means Committee is set to vote on additional changes meant to lower the price tag of its bill to get it within the limit.
Sen. Susan Collins, a Maine Republican, has expressed concerns about a complete elimination of the estate tax, raising the possibility that the Senate bill won’t go as far as the House. The House version raises the exemption for a couple to estates of $22 million.
Senate Minority Leader Charles Schumer on Thursday warned ‘every one’ of his suburban Republican colleagues in the House, ‘This bill could be your political doom’
Speaker of the House Paul Ryan (R-WI) answers reporters’ questions during his weekly news conference at the U.S. Capitol October 26, 2017 in Washington, DC. Moments before Ryan conducted his news conference, the House passed a fiscal 2018 budget 216 to 212, beginning a process for the Senate to move forward on an overhaul of the tax code
Sen. John Cornyn of Texas told reporters about the briefing of GOP senators.
Senate Minority Leader Charles Schumer of New York blasted the deal even before it got announced, complaining that it was being developed behind closed doors with no Democratic input.
‘They are trying to rush it through this chamber with reckless speed. Why? Because my friends on the other side know the longer their bill is out there for the public to see, the less the public likes it,’ Schumer said.
WASHINGTON, DC – NOVEMBER 03: Chairman of House Ways and Means Committee Rep. Kevin Brady (R-TX) holds up a postcard size tax form during an event at the Newseum November 3, 2017 in Washington, DC. Rep. Brady participated in a Politico Playbook interview on congressional efforts on tax reform
President Donald Trump is making the tax cut a top priority
Sen. Susan Collins, a Maine Republican, has expressed concerns about a complete elimination of the estate tax
‘Their only hopes of passing it are to rush it through before anyone can grapple with the stunning hypocrisy at the center of their plan.’
Hatch said his preference is not to delay the corporate rate cut. ‘I´d prefer to get it done,’ he said.
The Senate’s child tax credit is expected to be greater than House version.