The Capitol is seen at dawn as the Republican-controlled Congress prepares for a hectic week unveiling and promoting its tax-cutting plan, in Washington, Monday, Oct. 30, 2017.
WASHINGTON – House Republican leaders plan to propose preserving the top income-tax rate for very wealthy people, a last-minute adjustment to their plan to overhaul the tax code that they hope will assuage concerns that it will mainly benefit the rich, according to four people briefed on the planning Tuesday.
GOP leaders had planned to collapse the seven existing income tax brackets into three brackets, lowering the top rate from 39.6 percent to 35 percent, but now will retain the top bracket for people earning more than a certain threshold, perhaps $1,000,000, the people said.
The detail was one of several that emerged Tuesday as GOP leaders scrambled to put the final touches on their plan, widely seen as the last best chance for Trump and congressional Republicans to advance a major policy achievement this year. Drafters planned to work through the night on the bill and unveil it Wednesday, but later decided to delay it to Thursday, said House Ways and Means Committee Chairman Kevin Brady, R-Texas, its lead author.
After a closed-door meeting of his panel Tuesday night, Brady issued a statement saying, “In consultation with President Trump and our leadership team, we have decided to release the bill text on Thursday.” He said they “remain on schedule to take action and approve a bill” next week.”
The delay raises questions about whether Republicans have resolved all of their differences amid concerns that even a few defections could prevent the bill from passing.
The bill will aim to slash corporate tax rates, simplify taxes for individuals and families and lure the foreign operations of multinational firms back to the United States with incentives and penalties.
The decision to preserve a top rate signals that Republicans are eager to avoid the impression that their plan, which has already come under attack as doing little to boost the middle class, seeks only to reward wealthy Americans and corporations. And the move could attract the support of more moderate Republicans.
The House and Senate plan to work on separate tracks to pass legislation by Thanksgiving and send a bill to President Donald Trump for his signature by year’s end, though many expect it will take longer than that, if the effort succeeds at all.
“It will be the biggest tax event in the history of our country,” Trump promised on Tuesday during a meeting with business trade groups at the White House, a claim he has made repeatedly. Later, in a tweet, he said “the Republican House members are working hard (and late) toward the Massive Tax Cuts that they know you deserve.”