WASHINGTON _ House and Senate Republicans have agreed to set the deduction for pass-through business income at 20 percent, two sources confirmed to Roll Call.
Members said discussions are still fluid and nothing is final until both chambers sign-off.
The agreement is noteworthy, as the provision would mirror one originally included in the Senate version of the tax legislation, though at a reduced rate. The package passed by the chamber earlier this month would have put the income deduction at 23 percent. The House proposed a system tied to a lower top tax rate for pass-through income.
Whether the agreement is enough to satisfy concerns from Sens. Ron Johnson of Wisconsin and Steve Daines of Montana remains to be seen. The GOP duo pushed for the 23 percent level and their support for the final Senate bill hinged in part on that measure.
The Senate had hoped to send the House a final tax proposal Tuesday evening that likely included a 21 percent corporate tax rate, a top income bracket of 37 percent and a compromise $750,000 cap on mortgage interest deduction, sources said.
Republican and Democratic members of the tax conference will meet Wednesday for the first, and likely last, public meeting.
