Senate unveils rival GOP tax plan

WASHINGTON—Senate Republicans unveiled their version of the tax reform plan Thursday, putting the GOP one step closer to its goal of overhauling the U.S. tax code. House Republicans released their tax bill last week and are on their fourth-day of marking up the legislation in the Ways and Means Committee. The new bill from the Senate closely resembles the House plan but offers a few distinct changes Republicans will need to reconcile. The Senate version retains the current system of seven tax brackets, with slightly different rates. Top earners under the Senate bill would pay 38.5 percent, compared to 39.6 percent under the House plan. The Senate bill also would permanently reduce the corporate tax rate from 35 percent to 20 percent, but that cut would be delayed until 2019. The House bill calls for immediate implementation. The upper chamber version also completely repeals the state and local tax deduction and bumps the child tax credit to $1,650—$50 more than the House version and $650 more than the current deduction. Both the adoption tax credit and charitable contribution deductions remain untouched. Each bill is a moving target as lawmakers continue to negotiate over the details. The Senate Finance Committee plans to consider the bill next week to put Republicans on track for a full vote before Thanksgiving. House Republicans plan to clear their tax bill through the Ways and Means Committee on Thursday and schedule a full vote before the end of next week.