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Money News

Why President Trump Likes the Senate Tax Plan

November 10, 2017

  • The Senate released its own bill for tax reform on Thursday
  • The mortgage interest deduction will stay stay the same
  • Deductions for medical expenses and student loans will stay
  • The Senate plan would keep seven tax brackets, but the standard deduction will double
2 min read

President Donald Trump would like to enact tax reform legislation before 2018.

But there are huge divisions between the Senate tax bill, released on Thursday, and the House bill from last week. Whether the House and Senate can shore up their differences to pass legislation in the next six weeks is an open question.

The president, however, says he favors the Senate plan. “You’re going to like it a whole lot more,” he reportedly told a group of Democratic Senators this week.

Responding to criticisms that the House bill overwhelming favors the wealthiest earners–nearly half of the cuts would go to the nation’s wealthiest one percent of earners according to research–the Senate bill attempts to shore up popular tax incentives for the middle class.

It also makes some important tweaks to the House plan regarding corporate taxes and taxes for the wealthy.

Here’s a quick look at the differences in the Senate bill.

Republicans would like to cut taxes by $1.5 trillion over the next decade. But the House tax plan would create a deficit closer to $1.7 trillion according to the Congressional Budget Office, and increase the national debt by at least $3 trillion over the next decade, according to a new analysis by the Tax Policy Center.

House Majority Leader Kevin McCarthy (R-Calif.) told NPR on Thursday that he expects a reconciled bill to emerge in the House by late next week.


By Jeremy Quittner
Jeremy Quittner is the senior writer for Stash.

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