Senate GOP leaders have agreed to boost the deduction for pass-through businesses from 17.4 percent to 23 percent in a bid to save the teetering tax-reform bill.
Sen. Ron Johnson
Ronald (Ron) Harold JohnsonGOP senators say Warren nomination would divide Republicans Deadlock leaves no clear path for lame-duck coronavirus deal Senate GOP calls grow to give Biden access to intelligence briefings MORE (R-Wis.), who nearly derailed the legislation Thursday evening because he felt it did not do enough to help small and medium-sized businesses, announced the agreement.
“I appreciate the Senate leadership’s willingness to work to close the gap between pass-through businesses and C corporations,” Johnson announced.
Johnson on Thursday initially called for increasing the deduction for pass-through businesses to 25 percent, but settled for 23 percent.
Entering a meeting of the entire Senate Republican conference on Friday morning, Johnson said he did not know how the increased deduction would be paid for.
Johnson had proposed cutting the deduction large C corporations take for state and local taxes to raise revenue to offset a bigger tax cut for pass-through businesses.
But Senate Republican Whip John Cornyn
John CornynDemocrats regroup after Texas eludes them — again Heads roll as Trump launches post-election purge Haspel not in attendance at latest Trump intelligence briefing: reports MORE (R-Texas), entering the same meeting, said state and local tax deductibility for large companies would not be eliminated.
Cornyn and Senate Finance Committee Chairman Orrin Hatch
Orrin Grant HatchMellman: What happened after Ginsburg? Bottom line Bottom line MORE (R-Utah) also told reporters that they felt confident they had 50 votes to pass the broader tax bill.
