All eyes will now be on the Senate as the full House and the Senate Finance Committee passed their tax overhaul bills on Thursday.
Once the full Senate passes its bill, both versions of H.R. 1, the Tax Cuts and Jobs Act, will head to conference committee to be reconciled.
Senate Majority Leader Mitch McConnell, R-Ky., said the Senate would consider the Senate Finance Committee bill the week after Thanksgiving.
Greg Valliere, chief global strategist for Horizon Investments, said Friday that it may likely be winter before a bill gets done, as the “complicated issues, the estate tax, state and local taxes” still need to get ironed out between the two houses.
“I do think we’ll get a bill,” he said.
The headline for the markets after a bill passes: “a really dramatic cut in corporate tax rates, 35% to 22% or 23%; I’m not sure that President Donald Trump can get it down to 20%,” Valliere said.
“A lot of other provisions in the bill look quite positive for business,” he continued. “I think for individuals there will be some tax cuts, but I think there will be some watering down, and I think for the very rich, the tax bill might be a little less generous than perhaps people thought just a few months ago.”
The Tax Policy Center noted in its Friday blog post that it’s unlikely that the Senate will pass a bill with “as much as ease as the House version.”