Senate Republicans barrel toward sweeping tax overhaul - KCBD NewsChannel 11 Lubbock

Senate Republicans barrel toward sweeping tax overhaul

(AP Photo/J. Scott Applewhite). In this Dec. 5, 2017, photo, House Republicans, from left, Rep. Rob Woodall, R-Ga., Rep. Richard Hudson, R-N.C., Rep. Joe Barton, R-Texas, and Rep. Mark Sanford, R-S.C., arrive for a closed-door strategy session. (AP Photo/J. Scott Applewhite). In this Dec. 5, 2017, photo, House Republicans, from left, Rep. Rob Woodall, R-Ga., Rep. Richard Hudson, R-N.C., Rep. Joe Barton, R-Texas, and Rep. Mark Sanford, R-S.C., arrive for a closed-door strategy session.
(AP Photo/J. Scott Applewhite). Rep. Mark Meadows, R-N.C., chairman of the conservative Freedom Caucus, arrives for a closed-door strategy session with House Republicans as the deadline looms to pass a spending bill to fund the government by week's end. (AP Photo/J. Scott Applewhite). Rep. Mark Meadows, R-N.C., chairman of the conservative Freedom Caucus, arrives for a closed-door strategy session with House Republicans as the deadline looms to pass a spending bill to fund the government by week's end.
  • Related LinksMore>>

  • Congress seems on track to avert weekend government shutdown

    Congress seems on track to avert weekend government shutdown

    Wednesday, December 6 2017 3:00 AM EST2017-12-06 08:00:02 GMT
    Thursday, December 7 2017 3:41 AM EST2017-12-07 08:41:04 GMT

    Top Republicans are trying to quell GOP divisions and line up support for a short-term spending bill that would avert a partial government shutdown Saturday.

    Top Republicans are trying to quell GOP divisions and line up support for a short-term spending bill that would avert a partial government shutdown Saturday.

  • House OKs GOP bill expanding gun owners' rights

    House OKs GOP bill expanding gun owners' rights

    Wednesday, December 6 2017 3:12 AM EST2017-12-06 08:12:12 GMT
    Thursday, December 7 2017 1:20 AM EST2017-12-07 06:20:42 GMT

    The bill would allow gun owners with a state-issued concealed-carry permit to carry a handgun in any state that allows concealed weapons.

    The bill would allow gun owners with a state-issued concealed-carry permit to carry a handgun in any state that allows concealed weapons.

  • Tax overhaul could chill US affordable housing construction

    Tax overhaul could chill US affordable housing construction

    Tuesday, December 5 2017 6:09 PM EST2017-12-05 23:09:54 GMT
    Wednesday, December 6 2017 10:33 AM EST2017-12-06 15:33:41 GMT

    Municipal governments are worried the tax overhaul under debate in Washington, D.C. could have a chilling effect on the construction of affordable housing units just as homelessness reaches a crisis point on the...

    Municipal governments are worried the tax overhaul under debate in Washington, D.C. could have a chilling effect on the construction of affordable housing units just as homelessness reaches a crisis point on the West Coast.

  • Trump forges ahead on Jerusalem-as-capital despite warnings

    Trump forges ahead on Jerusalem-as-capital despite warnings

    Wednesday, December 6 2017 2:20 AM EST2017-12-06 07:20:14 GMT
    Wednesday, December 6 2017 6:52 AM EST2017-12-06 11:52:28 GMT

    The United States has never endorsed the Jewish state's claim of sovereignty over any part of Jerusalem and has insisted its status be resolved through Israeli-Palestinian negotiation.

    The United States has never endorsed the Jewish state's claim of sovereignty over any part of Jerusalem and has insisted its status be resolved through Israeli-Palestinian negotiation.

By STEPHEN OHLEMACHER and MARCY GORDON
Associated Press

WASHINGTON (AP) - The Senate on Wednesday barreled toward the most sweeping rewrite of the tax code in more than three decades as the top Republican senator said he was willing to compromise on a major sticking point for lawmakers from high-tax states such as New York and California.

The Senate voted 51-47 to formally begin negotiations with the House in an effort to reconcile their two tax bills. Days and nights of tough negotiations await.

GOP leaders are pushing to send a final blended package to President Donald Trump to sign before Christmas. Republicans see the tax overhaul as a pressing political imperative to preserve their majorities in Congress in next year's elections.

"The American people deserve taxes that are lower, simpler and fairer," said Senate Majority Leader Mitch McConnell, R-Ky. "By voting to go to conference, we will be one step closer to getting it done."

Before the Senate vote, McConnell said he favors expanding a deduction for state and local taxes to enable Americans to deduct local income taxes as well as property taxes.

The proposal is a possible solution to a standoff with rebellious House Republicans from high-tax states. The tax bills passed by the House and Senate would end deductions for state and local income and sales taxes, while allowing only a deduction of up to $10,000 for property taxes.

Several GOP lawmakers from high-tax states voted against the House bill last month.

"The state and local tax deduction is not as important to Senate Republicans as it is to House Republicans," McConnell said on the Hugh Hewitt radio show.

"There's some in the House who would like to see that applied not just to property, but to income tax, you know, where you can sort of pick which state and local tax you want to deduct," McConnell said. "That sounds like a kind of reasonable idea."

The House and Senate bills both would provide steep tax cuts for businesses and more modest tax breaks for families and individuals. The tax cuts in each bill add up to about $1.5 trillion over the next decade.

Rep. Kevin Brady, R-Texas, said negotiators are looking at several options to help people who live in high-tax states, including expanding the state and local tax deduction to include income taxes.

"That's one of the options that our lawmakers have brought to us from California and New York and Illinois and others. So yes, we are looking at it," said Brady, who is one of the lead negotiators for House Republicans.

Brady said lawmakers are also considering adjusting the tax rates, adjusting the tax brackets, increasing the child tax credit and eliminating the alternative minimum tax, which was intended to ensure that high-earners pay at least some tax.

The House package eliminates the AMT; the Senate bill reduces the number of people who would pay it.

The House bill increases the child tax credit from $1,000 per child to $1,600; the Senate bill increases it to $2,000.

___

Associated Press writer Alan Fram contributed to this report.

___

Follow Stephen Ohlemacher on Twitter at http://twitter.com/stephenatap

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • National politicsMore>>

  • Trump defends tax plan, proclaims economy set 'to rock'

    Trump defends tax plan, proclaims economy set 'to rock'

    Saturday, December 16 2017 3:16 AM EST2017-12-16 08:16:02 GMT
    Saturday, December 16 2017 7:20 PM EST2017-12-17 00:20:56 GMT
    (AP Photo/J. Scott Applewhite). House Ways and Means Committee Chairman Kevin Brady, R-Texas, is pursued by reporters in the Capitol after signing the conference committee report to advance the GOP tax bill, in Washington, Friday, Dec. 15, 2017.(AP Photo/J. Scott Applewhite). House Ways and Means Committee Chairman Kevin Brady, R-Texas, is pursued by reporters in the Capitol after signing the conference committee report to advance the GOP tax bill, in Washington, Friday, Dec. 15, 2017.

    Republicans working to execute their first major legislative achievement of Donald Trump's presidency appear to have secured the votes to pass a massive tax overhaul that Trump hoped to present to Americans. 

    Republicans working to execute their first major legislative achievement of Donald Trump's presidency appear to have secured the votes to pass a massive tax overhaul that Trump hoped to present to the American people for Christmas.

  • After Alabama, abortion may be backseat issue in 2018 races

    After Alabama, abortion may be backseat issue in 2018 races

    Saturday, December 16 2017 12:06 PM EST2017-12-16 17:06:09 GMT
    Saturday, December 16 2017 7:20 PM EST2017-12-17 00:20:50 GMT

    Both Democratic and Republican operatives say abortion may take a backseat to other issues in 2018 now that conservative Alabama has elected a Democrat who supports abortion rights.

    Both Democratic and Republican operatives say abortion may take a backseat to other issues in 2018 now that conservative Alabama has elected a Democrat who supports abortion rights.

  • Nevada Democrat, facing ethics probe, won't seek re-election

    Nevada Democrat, facing ethics probe, won't seek re-election

    Saturday, December 16 2017 4:59 PM EST2017-12-16 21:59:02 GMT
    Saturday, December 16 2017 7:20 PM EST2017-12-17 00:20:43 GMT

    First-term Democratic Congressman Ruben Kihuen of Nevada is denying allegations of sexual harassment but says he won't seek re-election.

    First-term Democratic Congressman Ruben Kihuen of Nevada is denying allegations of sexual harassment but says he won't seek re-election.

Powered by Frankly