The House version of the GOP tax plan has already been passed by the Senate, and Republicans are moving on to the House’s version of their legislation, which is expected to pass in early December.
While the Senate bill will almost certainly have to be reconciled with the House bill, the House is expected in the next few weeks to make the changes to the Senate legislation that will make it more palatable for House Republicans to vote for.
The Senate tax bill is expected, in part, to include provisions that would make the corporate tax rate less favorable to companies.
The tax code currently treats all businesses, whether they are publicly traded or privately held, as having a single corporate income tax rate, which applies to their taxable income and deductions.
Under the Senate plan, that tax rate would be reduced by a small amount.
That could mean the corporate rate would fall by 10%, while the corporate deduction would be increased by $4,000 for every $1,000 of adjusted gross income.
The bill also would end the estate tax and would repeal the alternative minimum tax.
Those changes could make it harder for many businesses to take advantage of deductions and credits that some Republicans have said they want to see in the tax plan.
Democrats are calling the proposed changes to individual tax rates and the corporate deductions “devastating.”
They say the GOP plan could also leave the tax code more regressive and would exacerbate the widening income gap between the wealthiest and the middle class.
The House plan would also end the child tax credit, which helps low- and middle-income families pay for college tuition.
The Republican plan would replace it with a credit called the Child Tax Credit for Working Families, which would expand the tax credit to those who make up to $115,000 a year and those who earn between $113,000 and $115.6000.
Under current law, the credit is capped at $1.5 million.
But if the Senate tax plan were enacted, the cap would rise to $1 million for individuals and couples earning less than $115 in income, $2 million for couples earning between $117,000 to $118,000, and $4 million for those earning between a combined $118.6 million and $119,000.
It would also eliminate the child credit for families with incomes less than two million a year.
The proposal also would eliminate the tax-free student loan interest deduction.
It’s not clear how much this would cost the federal government, but some analysts believe that eliminating the tax deduction would increase the federal deficit by $1 trillion over the next decade.
A separate bill would allow people to deduct state and local property taxes paid on their homes, as well as state and federal income taxes, property taxes, and sales taxes.
In a sign that the House GOP plan will be considered by the full House, Rep. Peter King (R-N.Y.) suggested in a recent interview that the Senate Republicans’ version of tax reform is more palatably palatable.
“I think that the differences are going to be less significant,” King said.
“It may not be as much of a tax cut for middle-class families as the House plan.”
The House GOP tax package will be introduced in the House later this week, and the Senate is expected soon to vote on its version.
The plan, if passed, would reduce the top tax rate to 35% from 39.6% and the top individual tax rate from 39% to 35%.
The tax cut would cost about $1 in revenue per household for every household earning $75,000 or more, according to a study by the Tax Policy Center.
The Congressional Budget Office estimated that the GOP’s plan would add about $2.8 trillion to the deficit over the decade.