House and Senate Strike Compromise on Final Tax Reform Legislation

This Sept. 27, 2017, file photo shows Senate Majority Leader Mitch McConnell, R-Ky., cente
AP Photo/J. Scott Applewhite, file

The House and Senate struck a deal on the final version of the Republican Tax Cuts and Jobs Act on Wednesday. Republicans hope to pass the tax bill before Christmas.

Republicans reached a deal on the Tax Cuts and Jobs Act, which passed through the Senate in December. The House and the Senate convened a conference committee to reconcile the differences between the two bills.

Republicans still need to draft the final details; however, Republican leadership hopes to unveil the final tax reform legislation this week.

Passing the Tax Cuts and Jobs Act would give President Donald Trump and Republicans their first major legislative victory after the Senate failed to pass an Obamacare repeal bill multiple times. The Senate-passed Tax Cuts and Jobs Act repealed Obamacare’s individual mandate.

The deal sets the top individual tax rate at 37 percent, down from the current rate of 39.6 percent and lower than the Senate bill’s proposed rate. The compromise legislation would set the corporate rate at 21 percent, higher than the House’s proposed 20 percent.

Conservatives and business leaders ideally hoped to lower the corporate rate to 20 percent.

Sen. Marco Rubio (R-FL) reacted to the news that the final tax bill will decrease the top individual rate.

Rubio asked, “If you make $40,000, we can’t find the money to increase the child tax credit, but if you make a million a year we can?”

President Donald Trump said that passing the tax reform bill would ensure a “Merry Christmas” for the country.

Trump declared that passing tax reform can “be the beginning of the next great chapter for the American worker.”

Senate Majority Whip John Cornyn (R-TX), a member of Republican leadership, said, “I hope so — we’ve got to get this thing wrapped up so we can get it on the floor next week.”

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