Tax package would lower top tax rate for wealthy Americans

With shirts saying "fight poverty not the poor," people with the "Poor People's Campaign" gesture the group to remain quiet as the group leaves the Capitol Rotunda after praying in an act of civil disobedience in protest of the GOP tax overhaul, Monday, Dec. 4, 2017, on Capitol Hill in Washington. (AP Photo/Jacquelyn Martin)

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.

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