House Republicans rushing to finish a far-reaching tax cut package by Thanksgiving conceded late\u00a0Tuesday\u00a0that they would have to delay the release of their legislation by a day.<\/p>\n
The GOP now says the bill will be released on Thursday as lawmakers scramble to reach a consensus on how to restructure the nation\u2019s tax laws.<\/p>\n
Fights over possible changes to the tax status of 401(k) retirement plans and the state and local taxes deduction are at the center of the delay.<\/p>\n
Lobbyists chattered throughout the day over whether\u00a0Wednesday\u2019s\u00a0big unveiling of the GOP tax package would have to be delayed as it became clear that lawmakers were differing over various reductions.<\/p>\n
Hours before the decision was made to punt the release for a day,\u00a0Brady told reporters\u00a0that he intended to release text of a bill\u00a0Wednesday\u00a0\u2014 but that it would not be a chairman\u2019s mark.<\/p>\n
This would allow Brady to make changes to the text through the weekend ahead of a planned markup\u00a0on Monday\u00a0in the Ways and Means Committee.<\/p>\n
President Trump had sought to quash any changes to 401(k) plans last week, but it has become clear that Republicans have not stopped talking about shifting the tax status of the plans as they seek to ensure their bill does not add to the deficit after its first 10 years. Republicans have discussed lowering the amount people can put into their retirement plans before taxes, which could increase the amount of revenue initially hit by taxes.<\/p>\n
Under current law, people under 50 can put up to $18,000 in a 401(k) plan annually before it is hit with taxes. Taxpayers do not have to pay a tax on the money until it is removed from the account.<\/p>\n
On the state and local tax deduction, the tax framework Republicans released in September called for a full repeal, but GOP lawmakers from high-tax states such as New York and New Jersey have expressed opposition, warning it would hurt their middle-class constituents.<\/p>\n
Brady appears to be moving toward a compromise that would allow a deduction for local property taxes \u2014 a concession that could win at least some support from the blue-state Republicans.<\/p>\n
\u201cI think we’re moving in the right direction,\u201d Rep. Leonard Lance (R-N.J.) said on CNN\u00a0Tuesday.<\/p>\n
At the same time, Lance \u2014 a top target for Democrats in next year\u2019s midterm elections \u2014 stopped short of saying the compromise would win his support.<\/p>\n
Other\u00a0Republicans echoed his concerns.<\/p>\n
\u201cThis is still very damaging to my district. Based on what I know, I will say that I\u2019d still have to vote no,\u201d Rep. Pete King (R-N.Y.) told The Hill.<\/p>\n
Brady said he expects that the Joint Committee on Taxation will release a revenue estimate of the bill before the markup that does not take into account economic effects. A \u201cdynamic\u201d score that factors in economic effects is expected to come out after the markup and before the bill gets a vote on the House floor.<\/p>\n
The bill’s unveiling would launch the GOP’s blitzkrieg effort to try to pass legislation by Thanksgiving and trigger a lobbying bonanza from both supporters and opponents. Any delay in the bill\u2019s introduction is not helpful given the time pressures, though the delay of one day would not affect the planned Monday markup.<\/p>\n
Trump and congressional Republicans are under pressure to deliver a big victory on taxes, since they have yet to have a major legislative accomplishment so far this year.<\/p>\n
As part of the White House\u2019s efforts to boost momentum on the tax effort, Trump\u00a0on Tuesday\u00a0met with\u00a0representatives of\u00a0business groups including the U.S. Chamber of Commerce and the National Association of Manufacturers and urged them to sell the bill to the public.<\/p>\n
\u201cWe need you to be united, committed and proactive in order to overcome the forces fighting,\u201d Trump said.<\/p>\n
The president said he wants the House to pass a bill by Thanksgiving and to hold a signing ceremony by Christmas.<\/p>\n
\u201cIt will be the biggest tax event in the history of our country,\u201d the president said.<\/p>\n
While details have yet to be set in stone, the bill is largely expected to follow the guidelines congressional GOP leaders and the White House outlined in September.<\/p>\n
The bill will cut the corporate tax rate from 35 percent to 20 percent\u00a0and will lower the top rate for businesses whose income is taxed through the individual code to 25 percent.<\/p>\n