Taxes

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After weeks of debate in both the House and the Senate, lawmakers in Washington, D.C. are expected to vote on changes to the U.S. tax system this week.

From Texas Standard.

The U.S. House passed its version of a tax bill on Nov. 16, and now the Senate is racing to pass its own version before the end of the year.

As the clock ticks down, what ultimately happens with this tax bill could shape the terms of engagement for the midterm elections in 2018.

A small group of GOP senators may not be on board with the plan yet. John Diamond, director of Rice University’s Center for Public Finance, says that at least one senator is concerned that the tax plan doesn’t help small businesses.

6 Possible Hurdles For The GOP Tax Plan

Nov 26, 2017

President Trump boasted earlier this month that Republicans were working together to pass sweeping tax cuts in the waning weeks of 2017.

"We're working to give the American people a giant tax cut for Christmas," Trump said. "We are giving them a big, beautiful Christmas present in the form of a tremendous tax cut."

But first, GOP lawmakers will have to resolve some major policy differences that could derail the bill.

From Texas Standard:

Just two weeks after its introduction, and with a total of zero hearings, the U.S. House has approved what could be the biggest change to tax policy in at least a generation. The Senate Finance Committee also passed a GOP-sponsored tax bill that differs somewhat from the House measure.

From Texas Standard.

A new proposal from Republican lawmakers would cut some tax rates and overhaul portions of the U.S. tax code. House Republicans rolled out the Tax Cuts and Jobs Act in Washington on Thursday.

Among the most controversial aspects of the GOP tax plan is that it lowers the mortgage interest deduction for homeowners. Current homeowners wouldn’t be affected, but new borrowers would only be able to deduct the first $500,000 – that’s down from the current limit, which is $1 million.

John Diamond, director of Rice University’s Center for Public Finance says that the mortgage deduction change could lower Texas home values by 1-2 percent.

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