Tax Reform Heads To Senate Floor

The Senate tax reform proposal cleared the Senate Budget Committee on Tuesday, after already clearing its committee of origin, the Ways & Means Committee – sending the bill to the floor.

According to The New York Times, a “flurry of last-minute deal making” ensured that the bill would receive a favorable vote out of the Budget Committee, along party lines. From that coverage:

President Trump went to Capitol Hill on Tuesday for a lunch meeting with Republican senators, where he made promises to some and admonished another.

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Republicans emerged from the lunch increasingly optimistic about the bill’s fate and playing down the concerns that had threatened to bedevil its passage. Three key Republican holdouts, Senators Susan Collins of Maine, Bob Corker of Tennessee and Ron Johnson of Wisconsin, sounded positive about the bill on Tuesday after gaining assurances from Mr. Trump and the Republican leadership that their worries would be addressed.

Republican leaders are still trying to secure the votes they need to pass the bill on the Senate floor. The Senate plans to begin floor debate on tax reform on Wednesday. A final Senate vote could occur as early as this week, at which point the House and Senate would need to resolve the differences in the two bills.

See NACo’s chart of the differences between the two proposals here. Of major concern to Maryland counties, as well as counties throughout the country, are the elimination are the proposed eliminations of the state and local tax (SALT) deduction and advance refunding bonds. Both bills contain both provisions, although the House bill enables deductibility of property taxes of up to $10,000 per filer.