These key provisions of the Senate tax bill may be a tough sell in the House

[yallerdawg]

House Republicans may balk at bill changes

Source: USA Today, by Herb Jackson and Eliza Collins


Corporate rate delay

One of the most significant sections of the bill is the massive tax cut for corporations. Both bills would take the top corporate tax rate from 35% to 20%. However, the Senate cut would happen in 2019, while the House bill would have the 20% rate kick in next year.

Elimination of the estate tax

Currently estates up to $5.5 million are exempt from taxes, but both the House and Senate bills would raise that number to $10 million, at least to start. However, the House bill would increase the exemption above $10 million each year after next year, and eventually eliminate the estate tax after six years.

The Senate bill would leave the tax in place for estates over $10 million.

Repeal of the individual mandate

The Senate includes a repeal of the Obamacare provision that calls for an IRS fine on people who do not purchase insurance. The House bill did not, but not necessarily because of pushback from members. Trump started pressing for it to be included in a tax bill after the House had already crafted its bill.

The Congressional Budget Office estimated that within 10 years, 13 million fewer people would have insurance and those who buy it from government-managed exchanges would see rates increase by 10% a year because the pool of patients would be sicker as healthier people opted not to buy coverage.

Collins and Murkowski were calmed by promises from Senate leadership and the president that Congress will advance a pair of separate bills intended to keep premiums down.

Immigration

Like the insurance promises that Collins and Murkowski got, Sen. Jeff Flake of Arizona voted for the tax bill in part because he was promised he would be part of a Republican effort to prevent deportation of undocumented immigrants who were brought to the United States as children.

Flake did not say he was promised a bill to protect so-called "DREAMers" would be passed before the tax bill. But it is not clear the House would make passage of such a bill a priority at all.

Sunset on individual rates

Where the House bill made most of its changes to brackets, credits, deductions and rates for individuals and families permanent, the Senate bill imposes them only for five years, after which the current tax code would kick back in.

Read it all at: https://www.usatoday.com/story/news/politics/2017/12/01/senate-tax-bill-provisions-house/914598001/

This is not over! We have time to be heard!

[MiniMe]

1. The last one, Sunset on individual rates could be a big one

My guess is that if they leave that in the bill, it will not fit into the Senate rules on reconciliation any more. This will be interesting. I hope the hearings to try to merge the 2 bills are public.