Republican leaders in Congress have reportedly reached a deal on a final version of tax reform legislation, moving the bill one step closer to President Donald Trump’s desk.
The House and Senate had already each passed their own version of tax reform. However, there were several key differences between the two bills, meaning GOP leaders in each chamber had to meet to figure out a compromise.
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The new bill reportedly cuts the corporate tax rate to 21 percent, significantly lower than the current 35 percent rate, but also slightly higher than the 21 percent rate that was proposed in the House and Senate bills.
Moreover, the compromise legislation cuts the top individual tax rate from 39.6 percent to 37 percent, according to Business Insider.
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Another major compromise was made regarding state and local deductions. If the bill goes through, taxpayers can choose either a SALT deduction or a property tax deduction of up to $10,000, Politico reported, citing a congressional aide and “a person familiar with the process.”
“I think we’ve got a pretty good deal,” Senate Finance Committee Chairman Orrin Hatch told reporters, according to Reuters.
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A Senate and House conference committee is scheduled to hold a public hearing on Wednesday afternoon regarding the legislation. A final vote could come next week, The New York Times reported.
“We’re very close. I don’t want to get out in front of the chairmen but we’ve very close,” Senate Majority Whip John Cornyn told Politico.
He added that he hopes Republicans are able to announce the deal soon.
“We’ve got to get this thing wrapped up so we can get it on the floor next week,” Cornyn said.
Trump, meanwhile, is expected to eat lunch with GOP lawmakers on Wednesday, then deliver a tax reform speech at 3 p.m. from the White House.
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Quick passage of tax legislation was made even more crucial after Democrat Doug Jones defeated Republican Roy Moore on Tuesday in the Alabama special Senate election to fill the seat vacated by Attorney General Jeff Sessions.
Once Jones is seated, the GOP will hold a razor-thin, 51-49 majority in the upper chamber, meaning they can only afford one Republican defection on controversial legislation.
Right now, Republicans can only afford two GOP defections. Tennessee Sen. Bob Corker opposed the bill that previously passed in the Senate.
Following Jones’ win, Senate Minority Leader Chuck Schumer called on GOP Senate leaders not to vote on tax reform until Jones is sworn in. However, it appears that is unlikely to happen.
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