US President Donald Trump will make a final push on Wednesday to guide a Republican tax overhaul across the finish line, hosting congressional negotiators for lunch before a speech in which Donald Trump will make closing arguments for the legislation. Republican tax writers from the Senate and House of Representatives worked into Tuesday evening for reconciling the differences between the separate plans passed by each chamber, as important details, which includes a final rate of corporate tax remained in flux. Republican leaders are aiming to vote on the sweeping legislation before this year's Christmas. This particular timetable has become more crucial after the upset win by Democrat Doug Jones over Republican Roy Moore in Alabama's special US Senate election on Tuesday.
The victory of Doug Jones trims the already narrow Senate majority to 51-49 of the Republicans which could make it more difficult for them to push through legislation. On Wednesday, Senate Democratic Leader Chuck Schumer will call on Republicans to delay the tax vote until the newest senator can be seated which is very likely to be in early January of next year. The Republicans were still trying to finalize important details without increasing the deficit impact of legislation, which could add as much as about 1.5 trillion dollars to the national debt over the next decade. This is according to independent estimates.
The lawmakers said that both the House and Senate bills proposed for cutting the corporate tax rate to 20 percent from the existing 35 percent, but on Tuesday, the negotiators were discussing whether to raise that rate to 21 percent or not in the final bill.
US President Donald Trump signs the National Defense Authorization Act for the Fiscal Year 2018, accompanied by Vice President Mike Pence, at the White House in Washington DC. The tax writers were also still determining a top rate for individual taxpayers and weighing how to best scale back popular individual deductions for mortgage interest and local tax payments which the Senate and the House bills treated differently. The number two Senate Republican John Cornyn said late on Tuesday that they are still talking about a possible 21 percent corporate rate. Donald Trump is seeking to sign a tax bill by the end of this year to achieve the first major legislative victory of the Republicans since they took control of both chambers of Congress and the White House in January.