Senate to vote in week after Thanksgiving
The House is set to vote on their tax plan tomorrow. If it was in jeopardy of not passing it would not be coming to a vote. So expectations are for the vote to go smoothly.
The Senate tax plan went through a series of changes last night, partly to make the bill comply with Senate budget rules, and part to appease some Senators who are sitting on the fence. The Senate only has a two vote fluff if Democrats and Republicans vote with their party. No Democrats are expected to vote for the plan.
Here are the changes:
- Slightly cut individual tax rates for multiple brackets. They also propose 7 rates: 10%, 12%, 22%, 24%, 32%, 35% and 38.5%. The rates would expire after 2025.
- Reduce the corporate tax rate to 20% from 35%. That cut would be permanent
- raise the child tax credit from $2000 from $1000. The tax credit would phase out at 500,000 in household income. The change would expire in 2025
- The plan would repeal the Obama care individual mandate that requires most Americans to have health insurance or pay a penalty. The good: it will save 300 billion according to Senate Republicans. The bad: it is estimated that 13 million more people will be uninsured by 2027.
- Expand tax breaks for pass-through businesses
- Eliminates provisions that would have tax companies stock options when they vest.
Once both House and Senate tax plans are voted on and approved, they will then go to committee of both legislative houses where a single bill will be hashed out for vote.
The president hopes to have the bill on his desk before year-end.
