Senate Bill to Delay Corporate Tax Cut, Undo Local Deduction - KTVN Channel 2 - Reno Tahoe Sparks News, Weather, Video

Senate Bill to Delay Corporate Tax Cut, Undo Local Deduction

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Courtesy: AP Courtesy: AP

The Senate version of the Republicans' tax overhaul is set to be unveiled with billions in tax cuts for people and corporations, repeal of the federal deduction for state and local taxes, and a likely compression of the personal income tax brackets from seven to four.

A House panel, meanwhile, has approved far-reaching Republican legislation to deeply cut taxes for corporations, double the personal standard deduction and simplify the tax code.

The House Ways and Means Committee voted 24-16 along party lines to deliver the complex measure to the full House. It would shrink the number of income brackets from seven to four. The Republicans promote the nearly $6 trillion measure as a boon to the middle class. Democrats say it's a tax bounty for the rich.

Republicans are pushing to drive the legislation through Congress and get it to President Donald Trump by Christmas.

The bill would reduce personal taxes for many but also limit deductions for homeowners and end them for people with steep medical bills and student loans. It would increase the child tax credit.

The legislation pulling the attention of lawmakers in both chambers would bring the first major reshaping of the U.S. tax code in three decades.

Senate Finance Committee Chairman Orrin Hatch plans to take the wraps off the new Senate bill on Thursday. In the House, Ways and Means Committee Chair Kevin Brady was making changes before the panel votes Thursday to deliver it to the full House.

The feverish efforts by Republicans in both chambers were aimed at fulfilling a self-imposed deadline to get legislation out of the House and Senate before Thanksgiving, so that the period between Thanksgiving and Christmas could be devoted to reconciling the two versions. But the Senate already seemed unlikely to meet that deadline because of complex rules governing how it must consider the tax bill.

Democrats are angrily opposed to the GOP rewrite, arguing it's a giveaway to the rich and corporate America. Republicans contend that the tax reductions will help the middle class, even though some independent analyses have found that the wealthy and corporations benefit disproportionately.

In the House, Ways and Means Committee Chair Kevin Brady was making last-minute changes before the panel was to vote later Thursday to deliver its version to the full House. Brady's changes were being made to meet the $1.5 trillion maximum that the bill is allowed to add to the nation's $20 trillion debt. A preliminary estimate by Congress' nonpartisan Joint Committee on Taxation said the House measure as currently written would add $74 billion more to 10-year deficits than allowed.

The tax bill must deepen federal deficits by no more than $1.5 trillion over the coming decade. If Republicans don't meet that, the measure would be vulnerable to a bill-killing Senate filibuster by Democrats that GOP senators lack the votes to block. It also cannot add to red ink beyond the first 10 years without facing the same fate.

U.S. Senator Catherine Cortez Masto (D-NV) released the following statement on the release of the Senate Republican tax plan: 
“Republicans in Congress have introduced yet another tax reform proposal crafted behind closed doors and without bipartisan input from Senators. I have stated clearly that my priorities in any proposed tax legislation are that working and middle class families in Nevada and our small businesses do not receive a tax increase and that our federal deficit does not explode due to irresponsible fiscal management in Washington. Senator McConnell has said that this new plan will not raise taxes on the middle class in America. I’m not optimistic that he can keep his promise based on what the House GOP passed out of the Ways and Means Committee with a partisan vote just today. I have always said that I would welcome working with my colleagues across the aisle. We need bipartisan tax reform that is not a tax hike for working and middle class families, not permanent handouts to the wealthy and corporate special interests. I look forward to reviewing this proposal, and I will continue standing up for hard working Nevadan’s to make sure they don’t see a tax hike.”

(The Associated Press contributed to this report.)

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