The Senate Finance Committee is expected to start its work on the tax plan next week, with a full Senate vote likely after the week-long Thanksgiving break.
That's according to a Senate GOP source familiar with the details on the legislation being released Thursday afternoon. Senate Republicans are also pushing to pass their own, separate plan, that lawmakers would have to reconcile if each chamber passed its own bill. The House bill eliminates the estate tax entirely. They worry that a failure on taxes could give voters a reason to abandon them in the 2018 midterm elections. Their bill would leave the prized mortgage interest deduction untouched for homeowners in a concession to the powerful real estate lobby but would ignore a House compromise on the hot-button issue of state and local tax deductions. Maintains the mortgage interest deduction: The bill keeps the cap for the deduction at $1 million, as opposed to the House bill, which would cut it to $500,000. But internal party bickering could make it hard for the Senate and House to reach an agreement on a final bill. "There may be some differences, sure". On Tuesday, two Republicans had said the bill would retain the seven brackets but cautioned that changes were possible.
U.S. Republican Senator Jeff Flake on Thursday expressed concern about the Senate Republican tax proposal's impact on the national debt. This would help the bill's immediate deficit impact. Sessions to testify at hearing amid Russian Federation scrutiny Cornyn: Senate GOP tax plan to be released Thursday This week: GOP seeks to advance tax overhaul MORE (R-Fla.) and Mike LeeMichael (Mike) Shumway LeeOvernight Health Care: Trump officials to allow work requirements for Medicaid GOP senator: CBO moving the goalposts on ObamaCare mandate Cornyn: Senate GOP tax plan to be released Thursday MORE (R-Utah) said the $1,650 child tax credit included in the Senate plan didn't cut it. Republicans control 52 seats in the Senate, leaving only a slim margin of error.More news: Korean suspects in Jong-nam's murder
The tax legislation can only add $1.5 trillion over the next 10 years to the federal deficit to be considered under the budget reconciliation process. Bob Corker, R-Tenn., and James Lankford, R-Okla., who want to rein in the debt. "We are making steady and positive progress". But there is evidence that the GOP may have overestimated the amount of economic growth the bill can achieve.
"The Senate is not going to pass a bill that isn't clearly pro-family, so we look forward to working with our colleagues to get there", Rubio and Lee said. In the end, the CBO estimated this would add $338 billion in new revenue, which would more than fill the gap in the legislation.