Senate Tax Plan Has Delayed Corporate Cut, More Brackets

WSJ/Richard Rubin/11-09-17

Senate Republicans unveiled a proposal to overhaul the U.S. tax code Thursday that breaks in significant ways with a comparable House tax plan, including the level of top individual tax rates, the number of individual tax brackets, the timing of a corporate tax-rate cut and the particulars of estate tax changes.

The Senate bill, according to Senate ​Finance Committee ​aides, would delay a corporate tax rate cut until 2019. It would also double the estate tax exemption to a maximum of about $11 million per person, but it would leave the 40% tax itself in place for estates above that exemption level.

…The contrasts in the competing bills point to the challenge the GOP faces advancing the overhaul through Congress, which they aim to do by year-end.

PG View: If the GOP fails to get a bill to the president by year-end, they risk losing one or both majorities next year, which may well spell the end of the Trump administrations pro-business agenda. And as I suggested in today’s DMR, if that’s the way things shake out, stocks are “waaaaay overvalued.”

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