Late yesterday afternoon, the Senate Finance Committee released initial details of their tax reform legislation. Soon, the committee will begin the mark-up process before putting the final legislation before the full Senate for a vote. Heritage's tax expert Adam Michel had the following thoughts about the details released by the committee:
“The tax reform details released by the Senate Finance Committee this week build constructively on the work done by the House Ways and Means Committee. The Senate should be commended for lowering the top marginal rate, doing away with the bubble tax, and fully eliminating the state and local tax deduction. By permanently cutting the corporate tax rate and allowing for temporary expensing, both bills are pro-growth and pro-worker. If the Senate bill continues to delay the reduction in corporate taxes it will ultimately postpone job creation and a much-needed raise for American workers.
The congressional process now has the opportunity to further increase the pro-growth potential of tax reform. Working together, the House and the Senate should turn their focus to expanding and making expensing permanent, limiting the scope of the new international minimum taxes, fully repealing the death tax, and eliminating special interest tax subsidies. Done right, pro-growth tax reform can unleash the U.S. economy, strengthen workers’ wages, and increase job opportunities. In the coming weeks, Congress has the chance to borrow the best components of each bill to further enhance the proposed reforms’ benefits for all Americans.”