Richard Rubin and Siobhan Hughes reported on Friday at The Wall Street Journal Online that, “Republicans stood on the verge of delivering the most significant changes to the U.S. tax code in more than three decades, after a series of last-minute deals appeared to remove the last big obstacles to passage next week.
“The plan would deliver $1.5 trillion in tax cuts over a decade and reorder large chunks of the U.S. economy. The GOP, ending a year in full control of the Congress and White House, is delivering lower tax rates for individuals, business owners and corporations. However, those individual cuts would expire after 2025, the end of some deductions will sting residents of high-tax states and independent analysts say the plan will increase budget deficits.
“On Friday, Republicans picked up the backing of Sens. Marco Rubio (R., Fla.) and Bob Corker (R., Tenn.). Mr. Corker was the only Republican who voted no on the Senate’s first version. The bill needs 50 votes to clear the Senate. With Mr. Corker’s support it could wind up with 52. The House will vote first, on Tuesday, and passage looks likely. The bill seems likely to land on President Donald Trump’s desk soon.”
The Journal article stated that, “For individuals, the top rate would come down, too, from 39.6% to 37%. The other brackets would be 10%, 12%, 22%, 24%, 32% and 35%. An exemption on the 40% estate tax would be doubled to more than $11 million per person, though Republicans fell short of repealing the tax as some wanted.
“The bill would cut taxes for most households, though those reductions wouldn’t be universal or permanent. Many of the individual tax cuts are expected to expire after 2025. Republicans say future Congresses would extend them, making the actual fiscal cost larger than advertised.”
