House and Senate version of tax bill will bring sensitive negotiations

Congressional Republicans are facing critical decisions this week as they move within striking distance on a major legislative package for cutting the rate of taxes that is actually an achievement as per the party leaders which is crucial for stabilizing the recent political tailspin of the GOP ahead of the elections next year. The House has plans to vote on a GOP tax bill by the end of this week that would cut down the rate of taxes for companies and overhaul the tax code for virtually every family and individual of America. On the other hand, the Senate Finance Committee expects to vote on its version of the package within a time span of the next few days. Severe differences between the House and Senate tax bills still remain unresolved but there is enough overlap and the intra party resistance which was muted up till now is making the White House increasingly optimistic that an agreement can come by Christmas this year as the President of the United States, Donald Trump has repeatedly promised. The enactment of the package to cut the rate of taxes would mark the first major legislative accomplishment of the US president at a time when his job approval rating has dropped to a record low for this point in a presidential tenure.

An awkward and complex situation still remains. The House and Senate Republicans are in high risk of colliding over the fact whether Americans should be able to deduct local property taxes from their federal taxable income or not. The House GOP bill would allow Americans to deduct up to ten thousand dollars of those taxes from income as a way to make the complaints less hostile in nature from the conservatives in the high - tax states such as California, New Jersey and New York.

The chairman of the House Ways and Means Committee, Republican Kevin Brady said in an interview on Sunday to Fox News that it is extremely important to make sure that people keep more of what they earn, even in these high - tax states. Americans are permitted to use local property taxes as well as state income tax for offsetting their part of income that was federally taxed. Senate Republicans in their proposal have declined to allow for the deduction of any of those taxes. On the other hand, the House and Senate bills differ mainly on the point about how a huge corporate tax cut would go into effect.

January 16, 2022 - 03:36
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