Senate to delay corporate tax cut, breaking with Trump and House
WASHINGTON (Reuters) - U.S. Senate Republicans’ version of a tax cut bill will delay corporate rate cuts by one year to take effect in 2019, and will not include a repeal of Obamacare’s individual mandate, Republican Senate Finance Committee member Bill Cassidy said.
Senate Republicans plan to propose delaying a cut in the corporate tax rate until 2019, according to a GOP senator.
Sen. Bill Cassidy (R-La.) also said
the individual mandate will not be repealed as part of the Senate tax overhaul proposal expected to be released Thursday.
The proposal breaks with President Trump’s preference that a corporate tax cut be put in place immediately. The House's tax-reform legislation proposes lowering the corporate tax rate from 35 percent to 20 percent in 2018.
Other big changes from the House version include adding back in a deduction for medical expenses and a full repeal of state and local tax deductions.
Republicans are seeking to get a bill to President Trump's desk by Christmas.
A House panel could report its version out of committee on Thursday, and that measure could get a vote in the full chamber next week.
The GOP-written legislation is not likely to win over any Democrats, who blast it as a giveaway to the rich and object to cutbacks in breaks used by the middle class. Republicans say their standard deduction increase and tax rate cuts will make up the difference.
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