On the other side of the Capitol, the House Ways and Means Committee approved its own version of the legislation on a party-line 24-16 vote, amid intense political pressure on the GOP to push forward on the first major rewrite of the USA tax code in three decades.
The original legislation released November 2 fit into this window, but an amendment added Monday by the bill's author - Ways and Means Committee Chair Kevin Brady - pushed the deficit load higher than the allotment. It changes some popular provisions such as the mortgage interest deduction, but leaves others, like the 401 (k) tax benefit, unchanged.
The move means homebuyers would still to be able to deduct interest payments on loans of up to $1 million as permitted under current law.
"While we are glad to see an increase to the child tax credit, like the House bill, it is simply not enough for working families", they said.
GOP senators are quickly raising concerns about the Senate GOP tax plan hours after being briefed on the details of the proposal.
Amid intense political pressure to achieve results, Senate Republicans prepared to unveil sweeping tax legislation Thursday that would usher in billions in cuts for people and corporations and repeal the federal deduction for state and local taxes.
Shrinking that rate to 20 percent from its current 35 percent has been a primary goal of Trump and the business community, and delaying that reduction would help contain the bill's costs. But internal party bickering could make it hard for the Senate and House to reach an agreement on a final bill. Sessions to testify at hearing amid Russian Federation scrutiny Cornyn: Senate GOP tax plan to be released Thursday This week: GOP seeks to advance tax overhaul MORE (R-Fla.) and Mike LeeMichael (Mike) Shumway LeeOvernight Health Care: Trump officials to allow work requirements for Medicaid GOP senator: CBO moving the goalposts on ObamaCare mandate Cornyn: Senate GOP tax plan to be released Thursday MORE (R-Utah) said the $1,650 child tax credit included in the Senate plan didn't cut it. Keeps the estate tax, but raises the threshold: The estate tax would remain intact in the Senate bill, instead of being phased out like in the House bill. Both would drastically reduce the corporate tax rate and also lower rates for individuals, while eliminating deductions claimed by many people. The House bill would entirely eliminate the estate tax, while the Senate version would retain it while doubling the exemption level. Cruz lauded elements like the preservation of an adoption tax credit. Marco Rubio and others, an indication of how individual provisions will need to be negotiated with one lawmaker after another in the weeks to come.
The Senate plan allows for adding up to $1.5 trillion to the debt over 10 years. On Tuesday, two Republicans had said the bill would retain the seven brackets but cautioned that changes were possible.
Senate Republicans are using special budget reconciliation rules that prevent a Democratic filibuster. It also can not add to red ink beyond the first 10 years without facing the same fate.