tv Erik Wasson on GOP Tax Reform Bills CSPAN November 12, 2017 5:50pm-5:56pm EST
reporter. >> erik wasson covers congress for newport news. the senate finance committee begins its markup on monday. you have been writing about some of the key details. what are they? basicasson the architecture is the same. they have big corporate tax cuts. the house bill was dropped from 35% to 20% effective in 2018. the senate has the same thing, although it delays that i one year. both would reduce the individual tax rate and double the standard deduction. both would have some tax increases for those who itemize their deductions. the big issue that is controversial in both is the state and local tax deduction. this one is taken by a lot of upper-middle-class individuals. in the house they would retain the ability to deduct property taxes up to $10,000 a year.
the senate, it would go away. the main points people will be looking at in these bills, one of the things that was surprising is the senate retained the medical expense deduction, something if you repeal that it would cause hardships to those with medical problems. >> from the senate finance committee, who should we be paying attention to in terms of the leaders on both sides of the aisle? erik: the leaders of the committee, orrin hatch and run white have an issue of making bipartisan deals. this is structured as a partisan tax bill. it will be using the senate budget procedure which allows republicans to pass without any democratic help as long as they keep it below $1.5 trillion over 10 years. . not increasing the deficit after 10 years the current draft of the senate bill does have a third rule problem.
they will have to change that to maintain it with the partisan tax cut. you will likely see corporate tax cuts that expire in the 10th year. we are awaiting to see details on that. >> when will the full senate take this up? erik: after the thanksgiving break according to majority whip john cornyn. the ways house side, and means committee finished its work on the house measure. that is headed to the floor possibly thursday. what changes to the committee make to the measure? erik: there are some detailed changes, details for small businesses. a tax rate for small businesses with an income of less than $75,000 was a key concession to the small-business lobby. they came out in favor of the bill after initially opposing it. there are still major problems in the bill for some of the republicans in the house. the state and loca tax reduction is -- tax deduction is
still an issued. we will be looking to see if there's any tweaks in the rules committee on wednesday. there could be an amendment to allow some of the state income tax to be deducted. however even the proponents of the change say if speaker ryan can get to 218 votes without it, they will be no change. >> 20 house republicans voted against the measure mainly because of those limits you talked about to the state and local tax reduction. -- deduction. how much support will again from house republicans and democrats? erik: there are no democrats coming up in this bill. what is the california delegation going to do? most fell in line with the budget vote setting up this tax bill. darrell issa has come out against the bill over this
issue. we are looking at tom mcclintock trying to see where they will follow. so far it is in new york and new jersey delegations that have been leading the charge. i should mention the margin will be tight. there is a small group known as the house liberty caucus, big deficit hawks like walter jones, others like that. thomas massie who voted against this budget. they will likely vote against this tax bill again over the $1.5 trillion deficit increase. that gives house leaders a very small margin to work with. >> erik wasson on twitter. we will follow you on bloomberg.com. he for your time. >> the house and senate republican tax reform bills were a topic of conversation on the sunday news shows. kevin brady of texas and senators chris van hollen of