Tax Reform; Senate Bill Could Be Delayed

The Senate Finance Committee (SFC) has been preparing to release its tax reform measure on November 9, according to several lawmakers. However, now the Senate bill could be delayed. The SFC may now hold its bill until the House Ways and Means Committee concludes its markup of the Tax Cuts and Jobs Bill (HR 1).

Senate Bill Could Be Delayed

On November 8, SFC members John Cornyn, R-Tex., and John Thune, R-S.D., both said that the committee’s tax reform proposals will be unveiled on November 9. It did not matter where the House was in its process. At press time, the House Ways and Means Committee was expected to finish its markup of HR 1 late on November 8 or on November 9.

SFC Chairman’s Mark

The SFC Chairman’s Mark is expected to offer tax reform proposals that are significantly different than those in the House bill. For example, the SFC is expected to propose a 20-percent corporate tax rate, like HR 1. However, there are reports that the SFC will propose phasing in the rate cut over two to five years.

In addition, the Senate bill is expected to be crafted so that it complies with the $1.5 trillion budget reconciliation. Moreover, this is required for Republicans to use Senate rules allowing for the bill’s passage with a simple majority vote. Currently, the House bill exceeds this threshold. According to several reports, other differences in the Senate’s bill could include:

  1. different individual income tax rates; and
  2. a total repeal of the state and local tax deduction.

By Jessica Jeane, Wolters Kluwer News Staff

CBO Estimated Deficits and Debt Under the Chairman’s Amendment in the Nature of a Substitute to HR 1, the Tax Cuts and Jobs Act

CBO—Repealing the Individual Health Insurance Mandate: An Updated Estimate

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All stories by: CCHTaxGroup