Two Takes On GOP Tax Overhaul Proposals

After returning from its Thanksgiving break, the U.S. Senate is expected to vote on its plan to overhaul the tax system. Our guests discuss how the bill stacks up against the House’s proposal and whether Republicans have the right or wrong idea for America.

Both measures would take the corporate tax rate down from 35 percent to 20, though under the Senate bill that reduction wouldn’t take effect until 2019. The standard deduction would rise to $12,000 for individuals and $24,000 for married couples. The deduction for charitable contributions would remain intact.

There are some key differences between the two plans. The Senate proposal eliminates all state and local tax (SALT) deductions while the House version gets rid of most of them. The Senate also maintains the deduction for mortgage interest on newly purchased homes at the current ceiling of $1 million; the House caps interest deductions at $500,000. In addition, the Senate keeps the number of individual tax brackets at seven, but the House reduces it to four. Plus, the Senate eliminates the Affordable Care Act’s individual mandate while the House doesn’t touch that provision.

Click here to take part in our online poll on the dueling tax overhaul measures.

Which proposal do you support more, the Senate’s or the House’s? Or do you think both plans will harm Americans? Which aspect of tax code reform are you most passionate about and why? Give us a call at 1-800-642-1234 or email ideas@wpr.org. You can also tweet us @wprmornings or post on the Ideas Network Facebook page.