18 12 2017

Senate, House Reach 'Agreement In Principle' On US Tax Bill

House and Senate Republicans have reportedly reached an "agreement in principle" on a final tax reform bill, with a final proposal expected to be placed before President Trump by Christmas.

The agreement was reached during the Tax Reform Conference Committee Hearing held on December 13. "We are very close to producing legislation that will lower individual tax rates across the board and give the largest portion of tax cuts to middle-class families," confirmed Finance Committee Chairman Orrin Hatch (R-UT) in a December 13 statement. "With the end of the year approaching, I know we intend to move quickly, but methodically through this process, and I think that's the right course of action."

The final version of the bill is expected to include a corporate tax rate of 21 percent, slightly higher than the 20 percent rate originally proposed in both the House and Senate versions, according to reports in the US media. The top individual income tax rate is also expected to fall to 37 percent.

Speaking at the White House on December 14, President Trump gave a closing argument for tax reform in which he claimed that the average family of four earning USD75,000 would see tax fall by over USD2,000, and the average worker would see incomes rise by USD4,000 as a result of the corporate tax cuts.

"Middle-income families will benefit directly from tax cuts with an expanded standard deduction, an increased child tax credit, and lower rates across the board," said the White House.