And unlike the House version, the Senate bill would fully repeal the deduction for state and local taxes, which has become a sticking point with GOP congressmen from high-tax states like NY and New Jersey, whose constituents depend on that deduction.
That's according to a Senate GOP source familiar with the details on the legislation being released Thursday afternoon.
Yet as the Senate Finance Committee unveiled its bill, a few stark differences emerged with the version approved by the House tax-writing committee, underscoring the challenges ahead in getting both chambers to agree on the complex and far-reaching legislation that would affect almost every American. The House bill would reduce the limit to $500,000.
Millions of Americans would lose the ability to deduct up to $2,500 in student loan interest under the Republican tax bill.
The House included a deduction for the first $10,000 in property taxes to appease those members, but the Senate, which has fewer Republicans from such states, has no such provision in its bill.
Meanwhile, on the other side of the Capitol, the tax-writing House Ways and Means Committee voted along party lines Thursday to move ahead with a newer version of their plan. But internal party bickering could make it hard for the Senate and House to reach an agreement on a final bill. This is about getting the economy going.
They will reportedly bring the bill to a vote next week and we should have a better idea of the situation at that point.
That split could be perilous in the Senate, even under special budget rules that would allow the GOP to pass a tax bill with 50 votes instead of the 60 needed for most other legislation.
The House and Senate bills are broadly similar in their general outlines.
The Senate version also would delay a drop in the corporate tax rate from 35 percent to 20 percent by one year after passage, unlike the House version, which would have the cuts kick in right away.
Perdue said the Senate plan would compress the current seven personal income tax brackets down to four.
The Senate would boost the child tax credit to $1,650 and raise the income threshold for the measure. Marco Rubio and others, an indication of how individual provisions will need to be negotiated with one lawmaker after another in the weeks to come.
Republican leaders' goal is for Congress to send legislation melding both House and Senate versions to Trump by Christmas, in hopes of protecting their congressional majorities in next year's elections. Republicans contend that the tax reductions will help the middle class, even though some independent analyses have found that the wealthy and corporations benefit disproportionately.
Senate Finance Committee aides told The Washington Post that they would need to make adjustments to the legislation because it doesn't now meet the requirement that it not add to the debt after 10 years.
Senate Finance Committee Chairman Orrin Hatch, R-Utah, said Tuesday that he would review the House GOP proposal but would not endorse the bill entirely.