They’re the same, but different … and still giant corporate tax cuts.
Now that the House tax bill and the Senate tax bill have both passed, it’s up to a conference committee composed of members from each house to devise a compromise incorporating elements of both the House and Senate bills.
The rushed process behind the bill has led to a lot of media coverage and commentary that blurs the difference between the bills — and, to be sure, they’ve both, at heart, big corporate tax cuts.
But the differences between them are real, and important. The Senate bill, but not the House bill, would end Obamacare’s individual mandate, cutting health coverage in America by 13 million people. The House bill, but not the Senate bill, would end the estate tax entirely, and add a huge new tax on PhD students and other people receiving tuition waivers from their schools.
To summarize the bills, their differences, and how they depart from the status quo, the Tax Policy Center has prepared an incredibly long, detailed, and helpful chart:
Among the major differences the chart highlights, apart from the individual mandate, estate tax, and grad school issues, are:
- The House bill makes all its changes to the individual income tax code: including consolidated tax rates, a higher threshold for the top 39.6 percent rate, replacement of personal exemptions with increased standard deductions and child tax credits, and changes to the mortgage interest and state and local tax deductions. The Senate bill, however, lets almost all its individual changes expire, so the tax cuts don’t cost money outside the 10-year “budget window.” Senate rules require that budget legislation passing Read More Here