Republicans have reached a deal on the tax plan. They plan on sending it to President Donald Trump next week. This is according to inside sources.
Republicans have been hashing out the details of the tax plan for months. Various disagreements have come up. It has taken a lot of time to come up with a plan that is agreeable to all parties. However, it seems like that point has now been reached.
There were plenty of negotiations over the past few weeks, because various details of the tax plan were opposed by certain members of Congress. However, Republicans are now starting to put the tax plan in legislative text. Of course, there is still the possibility of further disagreements.
The Republican tax plan will reform the tax code and will have a sweeping economic effect. The tax plan keeps the 7 income brackets, but changes them slightly and reduces the tax rates for those brackets. It also greatly reduces the corporate tax rates. However, it eliminates certain deductions. For example, it will eliminate deductions for state taxes, which will greatly affect people living in states with high taxes, such as New York and California.
It is expected that the tax plan will change the economy, perhaps for the better. Businesses, with the reduced corporate tax rate, will certainly benefit. This will hopefully improve the economy overall.