Senate Republicans are unveiling a tax plan wildly different than the House’s.
The Senate has a tax reform plan — sort of.
On Thursday, as House Republicans continue to debate their tax reform bill in committee, top Senate Republicans briefed the GOP conference on their own plans for tax reform: a proposal that briefly delays corporate tax rate, completely eliminates the state and local tax deduction, and implements full and immediate expensing on company investments.
Based on conversations with senators in the hallways of Congress after their briefing, we are seeing the broad contours of a tax reform plan that looks substantially different from what the House has proposed, signaling some major obstacles to come between chambers. The House is scheduled to vote next week.
But this is only the opening bid from the Senate — and leadership has indicated it’s open to negotiation.
“There are two or three things in [this proposal] I hate, but I think they have done a good job at focusing on the single three-word goal of raising family income,” Sen. Lamar Alexander (R-TN) told reporters.
Senate rules dictates the tax bill can only increase the deficit by $1.5 trillion in the first 10 years and cannot affect it after that. That rule has already posed a major math problem for Republicans in the House, who are unified in their goal to cut taxes across the board but have faced deep internal disagreement on how to offset those cuts with changes to deductions, loopholes, and credits elsewhere.
It’s not clear how that debate will unfold in the Senate.
Republicans, frantically hoping to pass tax reform by Christmas — for fear that their first year controlling both Congress and the White House will come to an end with no major legislative victories — have spent months debating behind closed doors and avoiding Read More Here