Senate version of tax plan will dominate what ends up being passed

A US tax bill (if one is passed) will more closely resemble the Senate bill because they can only lose two votes and still pass it without Democrat support.

Republicans control 52 votes in the 100-seat Senate, meaning they can only lose two members if they want to pass a bill without Democratic support. A 50-50 tie would go to Republicans, as Vice President Pence would cast the tiebreaking vote.

To use special Senate procedures to get around a filibuster from Democrats, Republicans must write a bill that does not add more than $1.5 trillion to the debt over 10 years.

The Senate tax package would delay cutting the corporate tax rate from 35 percent to 20 percent until 2019.

The one-year delay would lower the cost of the tax bill by more than $100 billion, and negotiators are trying to preserve as much revenue as they can for other changes.

The Senate bill would prohibit Americans from deducting state and local income and property taxes from their federal bills, a change which could raise taxes overall for Americans in high-tax states such as New York, New Jersey, California, and Illinois.

The Senate plan would also keep the mortgage interest deduction largely intact, capped at the current level of $1 million.

The Senate bill will propose to lower tax rates across income levels as a way to lower tax bills for most Americans, Senate Finance Committee aides said.


Don’t miss the latest future news

Subscribe and get a FREE Ebook