Trump's tax overhaul a step closer to reality


Trump made comments over the weekend suggesting it was a possibility that added some uncertainty to the Republican tax legislation just hours after the Senate narrowly passed the GOP tax bill. The cut in corporate taxes could be delayed until 2019, depending on the outcome of House-Senate negotiations. "They're going to get tremendous, tremendous tax cuts and tax relief and that's what this country needs", Trump told reporters at the White House.

The almost 500-page bill, passed 51 to 49, cuts the corporate tax rate from 35% to 20%. The final hurdle is resolving differences between House and Senate versions of the legislation before it can go to President Donald Trump for his signature. It could be 22 when it comes out, but it could also be 20. A House-Senate conference committee will be named to work out the differences, a process that could require hard choices.

Good day for good news Trump roiled by Mike Flynn's guilty plea on Friday will welcome the Republicans getting to 50 in the Senate on tax reform
Good day for good news Trump roiled by Mike Flynn's guilty plea on Friday will welcome the Republicans getting to 50 in the Senate on tax reform

The bill has come under sharp criticism from Catholics for its considerable tax breaks for corporations and policies that would disproportionately affect low-income families.

Treasury Secretary Steven Mnuchin, who accompanied Trump to NY for fundraisers on Saturday, said in September that the 20 percent corporate rate was "not negotiable". Trump has said he wants to sign the tax package into law before Christmas.

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The Republicans at the helm of the US government are drawing closer to carrying out their pledge to cut corporate and individual taxes and create a potentially defining issue in the 2018 election that will determine control of Congress. Democrats have said the bill will exclusively help the wealthy and corporations at the expense of more modest-earning workers.

On the individual side of the tax code, the top tax rate paid by the highest-income earners would be cut slightly.

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