Party lawmakers proposed changes to the tax code that could offer the greatest benefit to businesses.
Two weeks after the House adopted a sprawling package of tax cuts, Senate Republicans on Monday unveiled their legislative vision proposing a series of tweaks that would primarily enhance the benefits provided to businesses.
The legislative text released by the Senate Finance Committee mirrors in broad strokes the effort the House adopted. Both aim to extend a set of tax cuts on individuals and corporations that will soon expire, which President Trump signed into law during his first term and has pushed to expand in his second.
But the Senate tax proposal — just one piece of a much larger domestic policy bill — is not identical to the approach that House Republicans clinched late last month. In short, the Senate measure offers bigger tax benefits for corporations as well as older Americans. It would also change the way that party lawmakers aim to deliver on Mr. Trump’s promises to end taxes on tips and overtime.
The tweaks could carry vast implications for millions of families and business owners, as Republicans continue to calibrate a costly bill that could alter the trajectory of the economy and shape the nation’s financial health for generations.
Here are some of the changes to individuals’ and businesses’ taxes under consideration in the Senate.
More generous corporate tax breaks
In a major win for businesses, Senate Republicans proposed to make permanent a set of generous deductions for research and development and other expenses, including machinery purchases. The House proposed to extend these measures, which were set to expire at the end of the year, but only on a temporary basis, as Republicans in the chamber looked for ways to shave costs from their already expensive legislation.