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Senate Budget Committee Approves Republican Tax Bill

The Senate Budget Committee approved the Republican tax bill Tuesday afternoon, clearing another hurdle for the legislation and putting it on track for a full Senate vote.

The vote came after Democratic leaders Nancy Pelosi and Charles Schumer pulled out of a planned meeting with President Trump to discuss the reform, with the Star-Telegram citing Tweets that the President sent before the meeting as the cause.

The final Budge Committee votes were along party lines, 12 to 11, in approval. A full Senate vote is expected later this week.

The Senate's tax reform plan differs from the House's in multiple keys ways.  The House bill is expected to cost $1.51 trillion over a decade, while the Senate version waits to cut the corporate tax rate from 35 percent to 20 percent until 2019, which would lower the cost of the bill by over $100 billion.

In addition, the Senate bill has more individual tax brackets at seven compared to the House’s four. The Senate bill merely seeks to change the estate tax, as opposed to the House bill that proposes to eliminate it entirely by 2024.

The Washington Post reports that the Senate bill seeks to reduce the number of people who are required to pay the estate tax by doubling the size of the estates that are tax-exempt.

Perhaps the biggest difference presented by the Senate bill impacting housing professionals is that the Senate plans to keep the mortgage interest deduction intact at $1 million while the House counterpart seeks keep existing homeowners at the deduction while capping future purchases at $500,000.

About Author: Rachel Williams

Rachel Williams attended Texas Christian University (TCU), where she graduated with Magna Cum Laude with a dual Bachelor of Arts in English and History. Williams is a member of Phi Beta Kappa, widely recognized as the nation’s most prestigious honor society. Subsequent to graduating from TCU, Williams joined the Five Star Institute as an editorial intern, advancing to staff writer, associate editor and is currently the editor in chief and head of corporate communications. She has over a decade of editorial experience with a primary focus on the U.S. residential mortgage industry and financial markets. Williams resides in Dallas, Texas with her husband. She can be reached at [email protected]

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