WASHINGTON -- Senate Republicans on Thursday will propose a tax overhaul that does away with deductions for all state income and property taxes, going further than the version proposed by the House and delivering a blow to residents of California and other high-tax states, according to a Republican aide familiar with the plan.
The Senate plan would also delay a proposed new lower 20 percent corporate rate until 2019 in order to avoid adding more than $1.5 trillion to the deficit, which would violate terms of the recently passed budget, the aide said. The House tax plan, at President Trump's urging, offered an immediate corporate cut from the current 35 percent rate.
Senators are set to convene later in the day behind closed doors to review the proposal.
Both the House and Senate are rushing toward final passage this year on the top GOP priority.
Senate Majority Leader Mitch McConnell, R-Ky., called the package "another critical step toward providing relief to the middle class."
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