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Republicans race the clock to finish tax reform before Christmas

Republicans race the clock to finish tax reform before Christmas

“Before Christmas,” said Senate Majority Leader Mitch McConnell, R-Ky., Wednesday, when asked by radio host Hugh Hewitt about timing for final passage.

Senate Republicans added the corporate AMT and a reduced individual AMT back into the bill at the last minute on Friday night in order to free up revenues for other tax breaks required by senators to earn their votes.

The problem is that the bill would lower the corporate tax rate from 35 percent to 20 percent, but it wouldn’t change the AMT rate, which is also 20 percent.

Similarly, the individual AMT added back into the bill would partly undermine its purpose by becoming the relevant tax for a large group of people.

For example, on Wednesday, House members expressed interest in adding back in deductions for teachers’ out-of-pocket expenditures, student loan interest, and medical costs, all of which are in the Senate version.

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