Dueling Tax Plans: Here’s What the Senate and House Have to Resolve

Dueling Tax Plans: Here’s What the Senate and House Have to Resolve
Reducing the corporate tax rate to 20 percent, from 35 percent, is at the center of both the House and the Senate tax plans.
By the end of the day, the Senate may add in the $10,000 property tax deduction, which would go a long way to assuaging House lawmakers as well.
But the Senate may well add that House property tax provision into its bill to satisfy Senator Susan
Collins, Republican of Maine, who has said that it must be done before she commits to the bill.
Increasing the corporate tax rate would be a troublesome development for many Republicans
and Mr. Trump, who have drawn a red line on a 20 percent corporate rate.
The Senate imposes a one-year delay on lowering the rate, a move
that allows Senate Republicans to preserve other deductions that the House eliminates.
House lawmakers created a new 25 percent tax for so-called pass-through businesses — sole proprietorships, partnerships and S corporations
that currently pay taxes at the individual rate of their owners.
The House bill immediately cuts the corporate tax rate, fulfilling the wishes of President Trump.
The Senate bill sticks with seven brackets of 10 percent, 12 percent, 22.5 percent, 25 percent, 32.5 percent and 35 percent
but lowers the top rate to 38.5 percent for high-income individuals and couples.