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Tax reform bill pushed to Thursday

(FinancialPress) — Thursday has been penned as the day in which House GOP leaders aim to release their massive tax reform bill. The Wednesday release was postponed due to unresolved decisions on key issues.

Chair of House Ways and Means Committee and chief tax writer, Rep. Kevin Brady, originally planned to present the bill on Wednesday, as to have it passed through the House prior to the long Thanksgiving break.

It‘s been reported that GOP tax writers are still working on several kinks on the plan, such as modifications to the 401 (k) retirement accounts, that include possible changes to the application of the top marginal tax rate and the income level at which it will become applicable.

That would be the biggest substantial delay for Republican leaders. Their goal is to have it signed by President Donald Trump by Christmas.

While it certainly hit a roadblock, the broader timeline for the bill should not be seriously affected. A markup of the bill in the Ways and Means Committee remains booked for the beginning of next week.

Other main issues that forced the pushback include defining how leaders plan to offset the massive tax cuts in the plan. I.e.: a proposed marginal tax rate of 39.6% is meant to be part of the bill – however, lawmakers must still decide if it will be applicable to individuals making $750,000 or $1,000,000 annually.
One more issue of hot debate is that of the changes proposed to the 401(k) retirement savings plan. The White House and the House GOP have sustained a heated back and forth over the past week, with President Trump tweeting that there would be “NO changes to your 401(k)“, shorty after reports of that the Republicans planned to cap the contributions to the traditional accounts.

Rep. Kevin Brady stated the following regarding the delay:

“Ways and Means Committee Members met tonight to discuss the work we are doing on pro-growth tax reform. In consultation with President Trump and our leadership team, we have decided to release the bill text on Thursday. We are pleased with the progress we are making and we remain on schedule to take action and approve a bill at our Committee beginning next week.”

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