House and Senate Republicans say they’ve agreed to a framework on a tax overhaul bill, which Congressional leaders said should be approved next week.
As of Tuesday night, House and Senate negotiators were considering limiting deductions for mortgage interest loans to $750,000, according to Bloomberg. The House version had previously suggested a $500,000 cap, down from the current $1 million.
Despite public claims that the agreement between House and Senate Republicans was a done deal, during a 2 p.m. meeting between Congressional Republican and Democrats, House Ways and Means Chairman Kevin Brady (R-TX) said the Republicans “continue moving closer” to a final bill, indicating that the announced agreement was not ready to close. This angered Democrats in the room, who asked what the point of meeting was since the final bill had not yet been completed and details had not been announced. Senator Bernie Sander called it “a farce.”
Brady said the committee expects to release its report for public review by the end of this week.
The House and Senate Republicans said they reached a compromise on Tuesday over the corporate tax rate — arriving at 21 percent. This represents a slight increase from the 20 percent considered in both versions of the bill, down from the current 35 percent rate.
The fate of other aspects of the bill — like the proposed elimination of deductions for state and local income taxes— remains unclear. The Real Deal reported on Wednesday that the National Association of Realtors is still pushing for key changes to the legislation. [NYT and Bloomberg] — Kathryn Brenzel & Will Parker