Senate Republicans are continuing debate on their tax bill, with the next votes planned for Friday.
A number of issues remain to be resolved on the sweeping measure, which seeks to cut rates for individuals and corporations. Chief among those is how to raise revenue after the Senate’s parliamentarian rejected what’s known as a trigger that would have automatically raised taxes if the bill’s tax cuts weren’t paid for.
Deficit hawks including Sen. Bob Corker of Tennessee have been uncomfortable with the $1.4 trillion cost of the bill. On Thursday, the Joint Committee on Taxation said the bill’s tax cuts wouldn’t pay for themselves. The JCT said the Senate bill would generate more than $400 billion in revenue over 10 years through economic growth, but that’s not nearly enough to compensate for the measure’s cost.
Senators are now discussing alternatives including a gradual increase in the corporate rate. Republicans want to set the rate at 20%, but it could rise incrementally in later years. The current corporate rate is 35%.
Other measures reportedly being contemplated include reinstating the alternative minimum tax on some high net-worth individuals.
Hoeven says Republicans considering an AMT for C corps and high income individuals to raise around $500b since triggers won’t fly
— Alan Rappeport (@arappeport) November 30, 2017
Senate Majority Leader Mitch McConnell said late Thursday that the next votes would be at 11 a.m. Friday. There could be a number of votes before any vote on final passage, including on a slew of amendments. McConnell did not specify what would be voted on Friday morning.
Even if the Senate passes its bill, it would need to be reconciled with a House-passed version for a single measure to send to President Donald Trump.