Whatever the solution to bridge the gap is, it will likely be made behind closed doors. Despite the public debate this week, many of the most difficult decisions are being negotiated in secret between party leaders and individual members.
In addition to changes to international tax provisions, some GOP members want to restore the adoption tax credit, while others want to raise the mortgage interest deduction cap for new homes to $750,000 from $500,000. Yet others want to simplify rules that restrict which partnerships and other pass-through businesses can qualify for a tax rate of 25 percent.
The third day of the markup will likely include more back-room negotiations, as well as additional votes on amendments proposed by Democrats as lawmakers continue working their way through the 425-page tax bill.
It remains unclear what changes, if any, will be made to the bill before its expected approval by committee on Thursday. But Brady has said that once it reaches the full House for a vote, the legislation won’t be open to amendment. That means there are just two more days left to revise it. And two more days until the Senate plans to release its version of a tax bill, which could be significantly different from the House version. -- Sahil Kapur, Anna Edgerton, Lynnley Browning, Erik Wasson and Anna Edney
What to Watch on Wednesday:
The House markup is scheduled to start an hour earlier than it did on Tuesday, and could stretch late into the evening as Republicans try to meet their target of a final committee vote by Thursday. There could be changes to the bill’s provisions repealing the adoption credit and itemized deductions for medical expenses. Representative Tom Cole of Oklahoma said Tuesday those proposals are under discussion. More details about the Senate tax bill may emerge. Senate Republicans are said to be considering fully repealing individual federal tax deductions for state and local taxes -- including property taxes, and preserving the estate tax. Both measures would conflict with the House legislation. Republicans on the Senate Finance Committee are trying to finalize their version of a tax bill, which they hope to unveil Thursday.
Here’s What Happened on Tuesday:
The Ways and Means Committee voted down several Democratic amendments including limiting the debt increase under the bill after two years, restoring the state and local tax deduction, ending the SALT break for businesses if individuals cannot use it, raising the corporate tax rate enough to offset the cost of the bill, and restoring tax breaks for adoption and for employers who hire veterans. In one notable exchange, Representative Tom Reed, a New York Republican, demanded to know if Representative Bill Pascrell, a New Jersey Democrat, would support the tax bill if his amendment to preserve the veterans tax break was adopted. When Pascrell declined to say yes, Reed vented: “This is the game in D.C. that has brought us to gridlock.”
This article was provided by Bloomberg News.