House Panel Passes Tax Plan as Senate Readies Tax Bill Release

His amendment refines several provisions in the bill, and includes a provision to allow those with disabled children to roll over excess assets from a tax-advantaged 529 savings account into an ABLE account. 

Also, Brady says the bill now includes “a new, low tax rate for businesses earning less than $75,000 in income.”

The Save Our Savings Coalition said in statement that “We remain extremely pleased that the House legislation continues to protect retirement savings, allowing millions of middle-class families to continue to have the freedom to choose the savings vehicle that best suits their needs.”

The Coalition said that it applauds Brady and his Committee colleagues “for preserving our retirement system, and as the tax debate advances, the Coalition looks forward to continued work with the House, Senate and administration to safeguard families, consumers, retirees and their savings.”

The Senate tax plan, to be released Thursday afternoon, also continues retirement savings programs such as 401(k)s and IRAs, according to a document providing highlights of the bill. Further details on the treatment of retirement savings were not given.

The Senate plan would also repeal the Alternative Minimum Tax and retain the estate tax (with higher thresholds) as well as the mortgage deduction up to $1 million (unlike the $500,000 cap in the House bill).

The legislation also permanently lowers the corporate tax rate to 20%, and lowers the 39.6% top-earner tax bracket to 38.5%.

Senate Finance Committee Ranking Member Ron Wyden, D-Ore., slammed the Senate bill, stating that “Senate Republicans are doubling down on their gamble with middle-class family budgets to pay for massive handouts to big corporations and tax cheats.” 

The best example, he continued, ”is their elimination of the state and local deduction. In Oregon, Wisconsin, Georgia, the Carolinas and communities where the American dream has sparked economic growth and lifted families into the middle class, the Senate Republican plan will cause a lot of harm.”