After months of negotiations and cajoling by GOP leaders, they wound up with a compromise in both the House and Senate bills. They eventually joined fellow Republicans to scuttle the Democratic proposal. This bill is merely a tax break for corporations and would add a trillion dollars to our deficit over ten years. In the end, Bob Corker of Tennessee was on the only Republican senator to oppose the Senate measure due to his concerns about the debt. Republicans have cast passage of a tax overhaul as a political imperative to ensure they hold their House and Senate majorities in next year's midterm elections. It comes as House and Senate negotiators are working to iron out differences in the versions of the bill passed in their respective chambers, with the goal of having the legislation on Trump's desk for a signature before year-end. They also asked for the Congressional Budget Office and the Joint Committee on Taxation to produce a "complete analysis" before the conference report is finalized.
While the state-local tax conflict continues to dominate the scene, there are other key sticking points between the two bills. That's far short of the $2 trillion promised by Treasury Secretary Steven Mnuchin. In 2019, those who rank in the 95th through 99th percentiles would see their after-tax incomes rise by more than 3 percent after receiving "the largest cuts as a share of income", according to the study. Both McCain and Murkowski had voted against the GOP bill to dismantle the Obama health care law this past summer. Susan Collins of ME says she would consider removing her support from GOP tax plans, saying in an interview she could change her vote if her proposed amendments don't make it in the final version.
"I always wait until the final version of the bill is brought before us before I make a final decision on whether or not to support it", Collins said.
One of the amendments she added would allow a deduction for property taxes, another would allow a provision protecting retirement benefits for employees of charities and local governments, and another would be a medical expense deduction. Taxes are increased, especially for those who live in blue states.
Collins has made similar statements since the bill passed the Senate almost two weeks ago.
Sen. Steve Daines, R-Mont., backed the package Wednesday after securing an increase in the deduction for business income from 17.4 percent to 20 percent. He would pay for it by repealing the corporate deduction for state and local taxes. The standard deduction doubles to $24,000 for married couples. One of the big targets being looked at is the cut in the tax rate for corporations, a linchpin of the tax plan.