Republicans have so far struggled to find offsets for the steep tax cuts they have offered to both individual and corporate tax rates. After seeking to eliminate the tax deduction for state and local taxes, Republicans may be considering changes to ensure that middle-class Americans don’t end up with a tax increase.
The Senate adopted a 2018 budget resolution last week allowing for increasing the federal deficit by about $1.5 trillion -- before considering any economic growth from the planned tax changes. The House may vote as soon as this week on the Senate budget resolution, which is a crucial step to passing a tax bill with only Republican votes.
This article was provided by Bloomberg News.