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U.S. small business lobby throws support behind House Republican tax bill

U.S. small business lobby throws support behind House Republican tax bill

In a story published yesterday evening, Politico reported that House leaders have been "working to create customized data models" to show lawmakers that their constituents will not face a tax increase under the tax bill being debated in the House.

The feverish efforts by Republicans in both chambers Thursday were aimed at fulfilling a self-imposed deadline to get legislation out of the House and Senate before Thanksgiving, so that the period between Thanksgiving and Christmas could be devoted to reconciling the two versions.

The Senate version of the Republicans' tax overhaul is set to be unveiled with billions in tax cuts for people and corporations, repeal of the federal deduction for state and local taxes, and a likely compression of the personal income tax brackets from seven to four. While 1.6 million households in New Jersey claim the property tax deduction today, that number is expected to fall by almost 60 percent next year, to just 650,000, under the House bill.

Tax documents are seen prior to a House Ways and Means Committee markup of the Republican Tax Reform legislation on Capitol Hill in Washington, U.S., November 9, 2017.

The move means homebuyers would still to be able to deduct interest payments on loans of up to $1 million as permitted under current law. But the Senate already seemed unlikely to meet that deadline because of complex rules governing how it must consider the tax bill.

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Despite having property taxes that could potentially be deducted under the House bill, many of these taxpayers would not deduct those taxes in practice because the combination of itemized deductions they are allowed to deduct (which would no longer include state income and sales taxes) would be smaller than the standard deduction.

The Senate would boost the child tax credit to $1,650 and raise the income threshold for the measure. Marco Rubio and others, an indication of how individual provisions will need to be negotiated with one lawmaker after another in the weeks to come.

Senate Majority Leader Mitch McConnell, R-Ky., said the bill will deliver "new jobs and opportunities and tax relief for the middle class".

Democrats are angrily opposed to the GOP rewrite, arguing it's a giveaway to the rich and corporate America.

All the details from the Senate's version of the bill are not out yet, but a senator from South Dakota says that it does preserve the tax credit for electric cars. A preliminary estimate by Congress' nonpartisan Joint Committee on Taxation said the House measure as now written would add $74 billion more to 10-year deficits than allowed. It also can not add to red ink beyond the first 10 years without facing the same fate.