GOP tax reform bill heads to the senate floor for vote
Senate Republican leaders aim to hold a vote on tax reform legislation today; however, the situation remains fluid—Majority Leader Mitch McConnell may delay the vote to ensure he has adequate support.
The legislation would cut the corporate tax rate from 35% to 20%, repeal state and local tax deductions and increase the child tax credit from $1000 to $2000. It would also repeal the individual mandate that requires Americans to purchase health insurance or face a penalty, endangering federal health care funding.
Holdout senators appear to have been won over by a proposed “trigger” to automatically raise taxes if the reform causes a deficit increase. Regardless, with some Republicans sceptical of any provision that could hike taxes, it remains to be seen what form the trigger will take.
The odds currently favour the bill’s narrow passage. It would then go to a House-Senate committee to reconcile differences with the House’s tax bill. Though Republicans are desperate to pass major legislation by year’s end, a dispute between anti-tax hike House conservatives and Senate deficit hawk over the trigger could complicate the bill’s path to President Trump’s desk.
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