WASHINGTON (AP) – Congressional Republicans are rushing toward a deal on a massive tax package that would reduce the top tax rate for wealthy Americans to 37 percent and slash the corporate rate to a level slightly higher than what businesses and conservatives wanted.
It happened Tuesday in a flurry of last-minute changes that could profoundly affect the pocketbooks of millions of Americans. House and Senate negotiators agreed to expand a deduction for state and local taxes to allow individuals to deduct income taxes as well as property taxes. The deduction is valuable to residents in high-tax states like New York, New Jersey and California.
Negotiators also agreed to set the corporate income tax rate at 21 percent. That’s according to a pair of congressional aides who spoke on condition of anonymity because they were not authorized to publicly discuss private negotiations.