House Passes Tax Reform Measure, Attention Turns to Senate Finance Committee

DTN Political Correspondent Jerry Hagstrom reported yesterday that, “The House of Representatives on Thursday voted to approve a nearly $1.5 trillion tax overhaul bill. The bill passed with a 227-to-205 vote.

“President Donald Trump traveled to Capitol Hill ahead of the House vote Thursday morning to urge House Republicans to approve the measure.

The bill would cut the corporate tax rate from 35% to 20%, a level set early in the debate over tax reform. Businesses would get immediate expensing of capital costs, but business interest would be limited and other tax deductions and tax credits would go away.”

The DTN update noted that, “Attention now turns to the Senate Finance Committee, which continues working on its tax overhaul bill. The Senate will eventually be the chamber to watch on tax reform, because Republicans hold a slim majority. Some Republican senators have already panned the tax-reform bill because of the impacts on the annual budget deficit and long-term federal debt. Sen. Ron Johnson, R-Wis., became the first GOP senator to officially oppose the bill on Wednesday. Johnson told the Wall Street Journal the bill favors corporations too heavily over other types of businesses.”

Mr. Hagstrom added that, “Under the House bill, farmers could still deduct property taxes as a business expense, but the deduction for home property taxes and state income taxes would be limited to $11,000.

“The Senate bill also would allow a deduction for business property taxes, but eliminates the deduction for home property and state income taxes.”

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