GOP Negotiators Reach Tentative Tax Deal With 21% Corporate Tax Rate

President Donald Trump plans to make what his staff members called a “closing argument” for tax-overhaul legislation Wednesday as congressional Republicans consider last-minute revisions to key provisions. Here are the latest developments, updated throughout the day:

State Income Break Said to Be Part of Deal (1:09 p.m.)

A tentative deal reached by House and Senate lawmakers includes letting taxpayers deduct state income taxes in addition to property levies -- up to a $10,000 cap, according to two people briefed on the details.

The versions of the bills approved by the House and Senate just preserved the individual deduction for state and local property taxes -- capped at $10,000 -- but not for income taxes. House and Senate leaders, along with the White House, had previously signaled they were open to including state income tax deductions in the cap.

Under the House and Senate agreement, pass-through entities would be able to deduct 20 percent of their business income, instead of 23 percent as originally proposed in the Senate bill approved Dec. 2, the people said. The top individual tax rate would also be lowered to 37 percent, said the people, who asked not to be named because the discussions are private. Combined with a lower individual income rate, the change would still provide roughly the same amount of relief for owners of the most lucrative pass-through businesses.

The tentative accord comes as some Republican senators are still being briefed, and before the first open meeting of conferees at 2 p.m. on Wednesday.

President Donald Trump said Wednesday afternoon that passage of the bill would be a “historic” victory and that Republicans are “very, very close” to an agreement as he met with congressional negotiators at the White House.

“I think the conferees have reached a good place,” said Senator Thom Tillis of North Carolina regarding the tentative deal. -- Sahil Kapur

Negotiators Are Said to Reach Tentative Deal (12:13 p.m.)

House and Senate negotiators have reached a tentative compromise for the tax overhaul, said a person familiar with the conversations who asked not to be named because the discussions are private.