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Trump Tells Republicans to Cut Taxes for the Rich
14 November 2017, 12:52 | Darnell Patrick
Win Mc Namee Getty
The Senate bill would amend the tax code to include between five and seven income tax brackets whereas the House bill would reduce the number of brackets to no more than four.
An analysis showed, meanwhile, the Senate version of the legislation would actually increase taxes for some 13.8 million USA households earning less than $200,000 a year.
The Senate Finance Committee is scheduled Monday to begin considering its version of the bill, which also departs from the House version by delaying a corporate tax cut until 2019.
Combined with a new family tax credit and a deduction for mortgage interest for new purchases that would be capped at $500,000 of debt, the House bill "gets the job done", Brady said.
Under the new Senate bill, for example, the conservative Tax Foundation estimates the top 1 percent of taxpayers would see a 7.5 percent increase in after-tax income, versus less than 2 percent for the bottom 80 percent.
Yet a congressional analysis finds the Senate measure would actually increase taxes in 2019 for 13.8 million households earning less than $200,000 a year.
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In the case of the House bill, the top rate would stay at the current 39.6 percent but would apply it to a higher income threshold: For married couples, it would only kick in after the first $1,000,000 in income versus $470,000 now.
The analysts found a similar magnitude of tax increases under the House bill. Both versions of the tax plan cut the top individual rate, but the Senate version only lowers it to 38.5 percent.
The Senate bill proposes the elimination of state and local tax deductions whereas the House bill permits state and local property-tax deductions that do not exceed $10,000.
The chairman of the House's tax-writing committee is expressing confidence that his chamber won't go along with the Senate's proposal to eliminate the deduction for property taxes.
House Ways and Means Committee Chairman Kevin Brady, R-Texas, left, calls for a short recess to consider his manager's amendment, to the objections of Rep. Richard Neal, D-Mass., right, the ranking member, as the GOP tax bill debate enters a final day, on Capitol Hill in Washington, Thursday, Nov. 9, 2017. He said he believed the House is "on schedule".
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