Republicans hunker down for tax bill negotiations

WASHINGTON—Republicans in the House and Senate are ready to settle their differences on tax reform to give President Donald Trump a final bill to sign before Christmas. The House passed its bill last month and the Senate cleared its version of the legislation early Saturday morning. House Majority Leader Kevin McCarthy, R-Calif., told CNBC Monday that the differences between the two versions aren’t so great they can’t be resolved: “We can work and have it done this year.” The House version of the bill reduces the number of tax brackets from seven to four. The Senate bill keeps the seven-bracket structure but with reduced rates. GOP senators set the individual tax cuts to expire after 2025 in order to comply with its chamber’s rules. Both plans make permanent cuts to the corporate tax rate. House Speaker Paul Ryan, R-Wis., said he would appoint official negotiators to help meld the House-passed bill with the Senate legislation. Many of the changes to the Senate bill occurred just hours before the final vote. House Republicans don’t want to delay final passage but some are concerned about how the Senate plan adds $1.5 trillion to the national deficit over the next 10 years. Fiscal conservatives could demand spending cuts as part of the final bill.