The Senate GOP tax bill would make cuts permanent for corporations — but not for individuals

Orrin Hatch releases a new tax plan
(Image credit: Alex Wong/Getty Images)

On Tuesday night, Senate Finance Committee Chairman Orrin Hatch (R-Utah) released the latest version of the Senate tax bill, to be debated Wednesday morning in his committee. Along with eliminating the Affordable Care Act's individual mandate — which would free up more than $300 billion but also raise premiums by an average of 10 percent and result in 13 million fewer people with health insurance, according to the Congressional Budget Office (CBO) — the new version of the bill permanently cuts the corporate tax rate to 20 percent, from 35 percent, while setting a 2026 expiration date on all tax cuts for individuals.

For the next eight years, the child tax credit would rise to $2,000 per child, from $1,000 now and $1,650 in an earlier version of the tax bill, and trim rates for upper-middle-income people by 0.5 or 1 percentage point. The bill would also trigger $25 billion in immediate Medicare cuts as well as $85 billion to $90 billion in other spending cuts, the CBO estimated, unless Congress votes separately to negate those cuts. The benefits for individuals expire at the end of 2025 so that Congress won't pay for the tax cuts with more than $1.5 trillion in deficit spending, to conform with Senate rules.

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Peter Weber, The Week US

Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.