Republican Tax Bill in Final Sprint Across Finish Line
In an effort to assuage concerns that wealthy individuals would face a potential tax increase, the top individual income tax rate
will drop to 37 percent, down from the current rate of 39.6 percent in the Senate bill and the 38.5 percent in the House bill.
The changes included a slightly higher corporate tax rate of 21 percent, rather than the 20 percent in the legislation
that passed both chambers and a lower top individual tax rate of 37 percent for the wealthiest Americans, who currently pay 39.6 percent.
The agreement would cut the corporate tax rate to 21 percent, which is lower than the current 35 percent rate but higher than the 20 percent
that Mr. Trump had, until recently, said was nonnegotiable.
Lawmakers also yielded to concerns by business groups about the Senate’s last-minute inclusion of the corporate alternative minimum tax, which was added as a way to pay for the bill
but faced stiff blowback from companies who said it would restrict their ability to use the research and development tax credit.
WASHINGTON — The day after suffering a political blow in the Alabama special Senate election, congressional Republicans sped forward with the most sweeping tax rewrite in decades, announcing an agreement on a final bill
that would cut taxes for businesses and individuals and mark the party’s first major legislative achievement since assuming political control this year.
The House and Senate versions of the tax bill started from the same core principles — cutting taxes on business sharply, while reducing rates
and eliminating some breaks for individuals — but diverged on several key details.
The bill also allows individuals to somewhat choose how to use their state
and local tax deduction, giving them the ability to write-off up to $10,000 in property taxes, income or sales taxes paid or a combination of property and sales or property and income taxes.