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November 13, 2017

11-13-2017 Senate Republicans release a tax plan that may clash with the House’s tax reform vision (Vox)

  • Senate Republicans released their long-awaited tax reform plan late Thursday night, a week after the Republicans in the House released their plan. [Vox / Dylan Matthews
  • The two plans are divergent in a number of ways, most notably with the Senate proposing to delay a steep corporate tax cut wanted by the House for one year. The Senate plan would also keep the current number of tax brackets and wouldn’t get rid of the estate tax (although that tax would get cut). [WSJ / Richard Rubin
  • Those are significant differences, but there are plenty of similarities between the two plans as well. Both will provide steep tax cuts for corporations and let America’s wealthy keep more of their own money. [Vox / Dylan Matthews
  • The proposed one-year delay for corporate tax cuts likely won’t be welcomed by House leadership or President Trump, who is partial to the proposal. The delay could also mar the math that lawmakers have proposed to make up for the cost in tax cuts. [NYT / Jim Tankersley, Alan Rappeport, and Thomas Kaplan
  • Senate leadership says they are confident they can pass something by the end of the year, but a tax reform bill has a bunch of obstacles to overcome. One of the biggest ones is that the bill would currently add to the national deficit, and Republican senators including Bob Corker, Rand Paul, and Jeff Flake have indicated they won’t vote for a bill that adds to the deficit. [CNBC / Jacob Pramuk
  • This is being compounded by an extremely tight deadline: Republicans are committed to getting a bill onto Trump’s desk by the end of the year, and the clock is ticking. [NPR / Susan Davis
  • Democrats winning big in Tuesday’s elections in Virginia, New Jersey, and other states could also have an impact on what makes it into a final tax bill; Senate Finance Committee Chair Orrin Hatch told reporters the results of election night could make passing a bill more difficult. [Washington Post / Mike DeBonis and Ed O’Keefe
  • The main reason: Both the House and Senate plans propose getting rid of popular deductions that many upper-middle-class families rely on; it would be a very bad look politically to shift the tax burden onto these families to give big corporations and the ultrarich a big tax cut. [Washington Post / Todd Frankel]

 

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