Differences That Could Doom the Tax Bill

The House and Senate tax plans have much in common, but there are significant differences as well, any number of which could become flash points when the chambers seek to reconcile their versions of the legislation. “Everybody is looking at that tax plan and wondering exactly what are the devils in the details,” said Bruce McCain, Key Private Bank’s chief investment strategist. While the upper chamber’s bill still needs to win approval in the full Senate, with no guarantee that it will pass, it’s worth reviewing the key elements that could prove to be problematic, as well as those elements that are likely to survive in any tax bill that makes its way to President Trump’s desk.

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Some of the important and potentially problematic differences between the House and Senate bills include:

Property tax deduction: The Senate bill eliminates the property tax deduction, while the House version maintains it with a cap of $10,000. This is a crucial issue for Republicans from high-tax states such as New York and California.

Obamacare mandate repeal: Included in the Senate version and generating more than $300 billion in savings over 10 years, the provision opens a political can of worms that could cause problems in both chambers.

Individual tax brackets: The House bill reduces the number of tax brackets from seven to four, with a top rate of 39.6 percent. The Senate bill keeps the seven brackets while tweaking the levels, with a top rate of 38.5 percent.

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http://thehill.com/policy/finance/360966-class-warfare-fight-erupts-over-tax-bills