On Wednesday, U.S. President Donald Trump will give his final push to get the green light for the Republican tax overhaul, while hosting lunch for congressional negotiators prior to making his closing arguments for the legislation.
Republican tax writers from the both the Senate and House of Representatives worked diligently to reconcile the differences between the versions, but major details such as a final corporate rate remain in varied. Both versions of the bills cut the corporate tax rate from 35 to 20 percent percent, but negotiators were discussing raising the final rate to 21 percent, according to lawmakers. Tax writers were also still deciding a max rate for individual taxpayers and considering how to reduce current individual deductions for mortgage interest as well as local tax payments.
“We’re still talking,” said No. 2 Senate Republican, John Cornyn.
A meeting for official bipartisan negotiating committee is scheduled for Wednesday afternoon, while Republicans were still finalizing crucial details that would not increase the deficit impact, which could add as much as $1.5 trillion to the national debt over the next decade.
Trump is pursuing to sign a tax bill by the end of the year, which would be to Republicans’ first major legislative victory since taking control in January of both the chambers of Congress and the White House. Following lunch, Trump will deliver his speech on tax legislation next to five middle-class families who would benefit from the overhaul, according to senior administration officials.
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Trump was anticipated to dispute the claims that the tax plan would mainly benefit corporations and the wealthy by emphasizing how the plan would cut rates for lower- and middle-income taxpayers as well. Officials added that the lower and middle class may see additional benefits, such as higher wages as a result from the corporate rate cut.
Both independent government analyses by the nonpartisan Joint Committee on Taxation and the Congressional Budget Office concluded that wealthier taxpayers would overly benefit from the Republican proposals. When asked in a poll; who stands to benefit the most from Republican tax legislation, over half selected either the wealthy or large U.S. corporations.