House Ways and Means Committee member Rep. Tom Reed (R-NY) keeps a stack of books that document the current federal tax code and related regulations on his desk during the first markup of the proposed GOP tax reform legislation in the Longworth House Office Building on Capitol Hill November 6, 2017 in Washington, DC.
House Republicans will vote on their tax-reform bill on Thursday, aiming to take the most concrete step yet toward overhauling the American tax system.
House Majority Leader Kevin McCarthy, R-Calif., confirmed the plan to reporters on Tuesday. GOP leaders believe they can pass the bill this week, despite lingering resistance from some of the party’s members.
President Donald Trump plans to go to Capitol Hill on Thursday to make the case for tax cuts before the vote.
The GOP aims to pass a plan to chop tax rates for businesses and individuals by the end of the year to fulfill a key campaign promise. Lawmakers argue that changing the tax code will spark economic growth and boost job creation and wages.
This week, the Senate is marking up, or debating and amending, a separate tax bill.
On Thursday, House Speaker Paul Ryan described the current plans as a “work in progress.” He said he expects the two chambers to pass separate legislation before going to a conference committee to craft a joint plan.
Key sticking points in making the final legislation include the treatment of state and local tax deductions and raising enough revenue to make up for the tax cuts.
The Senate bill currently calls for eliminating all state and local tax deductions, which could create political trouble for Republican House members in high-tax blue states. The House bill also changes those popular provisions, but leaves a deduction on up to $10,000 in property taxes in place.
In addition, Republicans will have to consider making some tax cuts only temporary to comply with Senate rules. Under the process the GOP is using to pass a tax bill, it cannot create budget deficits outside of a 10-year window.
Ryan on Thursday said Republicans do not “intend” to have tax reductions expire, but will do it to make sure the bill complies with rules.