It would reduce that group’s tax rate by 2.6 percent to 37 percent.
Despite political pressure not to reduce top income earners’ taxes, Congressional Republicans negotiated a deal on Tuesday that would reduce that group’s tax rate by 2.6 percent to 37 percent.
Republicans would include the rate reduction in a final tax bill, which would need lawmakers’ approval in both the House and the Senate before reaching the president’s desk. It’s unclear what income level would face that rate but both the Senate and the House versions focused on those with incomes above $1 million, according to The Washington Post:
The tax bill passed by the House of Representatives in November would keep the 39.6 percent rate but only use it for income above $1 million. The Senate bill would eliminate the 39.6 percent rate and create a new top rate of 38.5 percent, which would go into effect for income above $1 million.
Republicans also considered lowering the corporate tax rate to 21 percent, instead of 20 percent, and finding a compromise on the amount taxpayers could deduct in mortgage interest.
President Donald Trump, Republicans hoped, could sign a tax reform package before Christmas.
