By leveraging political urgency, Rubio claimed a policy victory favoring lower income families as many conservatives are criticized for unfairly benefiting the wealthy.
Image source: Marco Rubio website.
And in a major reversal, Sen.
Another key senator, Bob Corker, the only Republican to oppose the original Senate bill, also said Friday he would vote for the compromise version.
"This bill is far from flawless, and left to my own accord, we would have reached bipartisan consensus on legislation that avoided any chance of adding to the deficit and far less would have been done on the individual side with items that do not generate economic growth".
Rubio's remarks sparked a frenzied effort to amend the tax bill to secure the senator's support.
Republicans are expected to vote on this bill as soon as Tuesday. Under other provisions of the bill, the standard deduction will rise, but personal exemptions will disappear.
The package would almost double the standard deduction, to $24,000 for married couples. For individuals, the amount goes from $6,350 to $12,000.
" State and local tax deductions are preserved, but capped at $10,000".
For comparison, here are tax rates under the current law.
The Senate bill doubled the current child tax credit from $1,000 to $2,000, while making $1,100 of that refundable.
A slightly less generous mortgage interest deduction. Initially, the GOP leadership had hoped to repeal the deduction entirely - a change that would have functioned as a large tax hike on affluent, upper-middle-class homeowners in high-tax (i.e., blue) states.
Pressed as to why the individual tax cuts will be temporary rather than permanent (the tax cuts for corporations and other businesses are permanent), Mr. Trump said the hope is that whatever administration is in power when they expire in roughly a decade will extend them.
" The estate tax remains, but the income exempted would double to $22 million". Business owners would be able to deduct 20 percent on the first $315,000 of joint income with safeguards being in place to prevent individuals abusing the lower rate for their wage income. The plan reduces rates for the majority of Americans and small businesses, with top income earners seeing their rate drop from 39.6 percent to 37 percent. Assets held by USA corporations overseas would face a one-time "deemed repatriation" tax of 8% on fixed assets and 15.5% on cash.
GOP lawmakers are expected to pass legislation providing the largest overhaul of the USA tax code in 31 years before the end of next week.
Here are the proposed rates for married couples who file jointly. Noem says that amount has been increased to $1,400. Under IRS regulations, churches are not allowed to endorse a particular candidate in a sermon or during services without potentially losing their tax-exempt status. The bill that passed the House would have repealed this restriction. The deferred tuition provided to graduate students who teach or the children of university employees would not be taxable.