STREAMING NOW: Watch Now

Tax deal reportedly struck between U.S. House and Senate GOP

Senator Mitch McConnell

Democrats want delay in any vote.

Posted: Dec 13, 2017 4:20 PM
Updated: Dec 13, 2017 4:21 PM

WASHINGTON (AP) — House and Senate GOP leaders forged an agreement Wednesday on a sweeping overhaul of the nation's tax laws, paving the way for final votes next week to slash taxes for businesses, give many Americans modest cuts and deliver the first major legislative accomplishment to President Donald Trump.

Top GOP aides said lawmakers had reached an agreement in principle on the final package. They spoke on condition of anonymity because they were not authorized to talk publicly about private negotiations.

The broad parameters of the deal call for cutting the top tax rate for the wealthy from 39.6 percent to 37 percent, slashing the corporate rate to 21 percent and allowing homeowners to deduct interest on the first $750,000 of a new mortgage.

One congressional aide said the deal was contingent on whether late changes to the bill still complied with budget rules adopted by both the House and the Senate. Lawmakers were waiting to hear back from analysts at the nonpartisan Joint Committee on Taxation.

The final House-Senate compromise is on track to be unveiled this week, the aides said.
Asked if there is a deal in principle on the tax cuts, Sen. Orrin Hatch, R-Utah, said, "It's more than that. I think we've got a pretty good deal."

The measure would give Trump his first major victory in Congress. It fulfills a longstanding goal by top Republicans such as House Speaker Paul Ryan, R-Wis., to rewrite the loophole-cluttered tax code.

As Trump met with lawmakers at the White House, he said they were getting "very, very close to a historic legislative victory."
The measure has come under assault by Democrats who say it is unfairly tilted in favor of business and the wealthy.

Top Senate Democrat Chuck Schumer said Wednesday GOP leaders should pump the brakes on taxes and delay a final vote until Sen.-elect Doug Jones, D-Ala., is sworn in.

"It would be wrong for Senate Republicans to jam through this tax bill without giving the newly elected senator from Alabama the opportunity to cast his vote," Schumer told reporters. "That's exactly what Republicans argued when (former Massachusetts GOP Sen.) Scott Brown was elected in 2010."

Back then, the issue was a sweeping overhaul of the nation's health care system that Democrats muscled through Congress in March 2010.

Trump was making a pitch Wednesday for the tax plan, which is unpopular with many. He will offer what aides called a "closing argument to the American people." Trump planned to deliver the speech from the Grand Foyer, the entrance of the White House mansion, laying out how the tax changes would specifically benefit the middle-class families in attendance from Pennsylvania, Ohio, Virginia, Iowa and Washington state.

The speech comes as the White House has sought to push back against polling suggesting the public views the plan as heavily tilted toward corporations and wealthy Americans. Trump has asserted that the plan will lower tax rates for individuals and spur job growth, helping American families.

The total amount of tax breaks in the legislation cannot exceed $1.5 trillion over the next decade, under budget rules adopted by the House and Senate. The legislation would add billions to the $20 trillion national debt.

Once the plan is signed into law, workers could start seeing changes in the amount of taxes withheld from their paychecks early next year, lawmakers said — though taxpayers won't file their 2018 returns until the following year.

In a flurry of last-minute changes, negotiators agreed to cut the top tax rate for individuals from 39.6 percent to 37 percent in a windfall for the richest Americans. The reduction is certain to provide ammunition for Democrats who complain that the tax package is a massive giveaway to corporations and the rich.

The top tax rate currently applies to income above $470,000 for married couples, though lawmakers are completely reworking the tax brackets.

House and Senate negotiators agreed to expand a deduction for state and local taxes to allow individuals to deduct income taxes as well as property taxes. The deduction is valuable to residents in high-tax states like New York, New Jersey and California.

Both the House and Senate bills would have scaled back the deduction for state and local taxes, limiting it to $10,000 in property taxes.

Negotiators also agreed to set the corporate income tax rate at 21 percent. Both the House bill and the Senate bill would have lowered the corporate rate from 35 percent to 20 percent.

Business and conservative groups lobbied hard for the 20 percent corporate rate. Negotiators agreed to bump it up to 21 percent to help offset revenue losses from other tax breaks, the aides said.

Among the other tax breaks, negotiators agreed to eliminate the alternative minimum tax for corporations, a big sticking point for the business community, the aides said. They also agreed to let homeowners deduct interest on the first $750,000 of a new mortgage, down from the current limit of $1 million.

The provision would not affect current mortgages.

Minnesota Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 42281

Reported Deaths: 1540
CountyConfirmedDeaths
Hennepin13568791
Ramsey5256233
Dakota271396
Stearns252319
Anoka2422111
Nobles16886
Washington128341
Olmsted127620
Mower9832
Rice8848
Scott8814
Clay61338
Kandiyohi5931
Blue Earth5752
Wright5395
Carver4942
Todd4032
Sherburne3695
Lyon3442
Freeborn3130
Watonwan2710
Steele2471
Benton2393
St. Louis23516
Nicollet20612
Martin1755
Winona14415
Goodhue1428
Cottonwood1410
Le Sueur1321
Otter Tail1141
Crow Wing11312
Pine1130
Chisago1101
McLeod1030
Dodge970
Carlton940
Polk903
Unassigned8838
Isanti830
Murray820
Chippewa811
Waseca780
Pipestone744
Douglas730
Itasca7112
Becker660
Morrison661
Meeker641
Faribault620
Sibley582
Jackson570
Pennington540
Beltrami530
Brown462
Mille Lacs402
Wabasha390
Renville372
Fillmore360
Rock340
Swift331
Grant320
Houston320
Yellow Medicine310
Roseau280
Redwood250
Wilkin223
Koochiching211
Norman210
Cass192
Lincoln190
Big Stone170
Kanabec171
Wadena170
Aitkin160
Marshall160
Clearwater130
Mahnomen131
Pope130
Stevens110
Hubbard100
Lake90
Traverse60
Lac qui Parle50
Red Lake40
Kittson20
Cook10
Lake of the Woods00

Iowa Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 35313

Reported Deaths: 751
CountyConfirmedDeaths
Polk7538185
Woodbury334644
Black Hawk251959
Buena Vista173811
Johnson14798
Dallas140931
Linn139983
Marshall110019
Scott108410
Dubuque97823
Story8726
Pottawattamie83513
Wapello71531
Muscatine69345
Crawford6813
Sioux5050
Tama48729
Webster4285
Wright3991
Louisa36713
Jasper35417
Plymouth3525
Warren3331
Cerro Gordo3171
Dickinson3063
Washington2569
Hamilton2021
Boone1721
Clay1501
Clarke1443
Allamakee1384
Clinton1381
Mahaska11917
Shelby1190
Carroll1171
Bremer1167
Poweshiek1138
Franklin1120
Pocahontas1091
Des Moines1022
Emmet970
Cedar961
Henry933
Hardin920
Cherokee851
Marion850
Floyd822
Taylor810
Guthrie784
Monona780
Benton751
Jones721
Butler702
Osceola690
Sac680
Buchanan651
Calhoun652
Iowa631
Jefferson630
Harrison620
Hancock611
Jackson610
Humboldt601
Lyon600
Fayette590
Delaware561
Madison552
Lee542
Mills530
Palo Alto530
Monroe527
Clayton503
Winneshiek500
Grundy470
Mitchell460
Winnebago440
Davis431
Union430
Kossuth420
Howard370
Lucas354
Unassigned350
Chickasaw310
Greene310
Cass300
Worth250
Ida230
Keokuk231
Appanoose223
Page220
Van Buren210
Audubon181
Adair170
Ringgold161
Montgomery152
Decatur130
Fremont110
Wayne110
Adams80
Rochester
Few Clouds
81° wxIcon
Hi: 82° Lo: 68°
Feels Like: 83°
Mason City
Few Clouds
83° wxIcon
Hi: 84° Lo: 69°
Feels Like: 85°
Albert Lea
Scattered Clouds
82° wxIcon
Hi: 83° Lo: 69°
Feels Like: 85°
Austin
Scattered Clouds
82° wxIcon
Hi: 84° Lo: 70°
Feels Like: 85°
Charles City
Few Clouds
83° wxIcon
Hi: 84° Lo: 68°
Feels Like: 85°
Monday finishes strong with storms on the way for Tuesday
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

Dave Noon Wx 7-13

Image

Mental health resources

Image

Dave Main Wx 6:30a 7/13

Image

Extended tax deadline is just two days away

Image

Zollman Zoo adapting to social distancing guidelines

Image

25th Anniversary Jodi

Image

New MC Test Site

Image

Operation Dry Water

Image

CL Splash Pad Opening

Image

MC Fireworks Ordinance Change

Community Events