South Dakota

GOP Tax Bill Signed, Nearly Sealed and Delivered

Senate Finance Chairman Sen. Orrin G. Hatch, R-Utah, left, and House Ways and Means Chairman Rep. Kevin Brady, R-Texas, conduct the Senate-House Conference Committee meeting on the GOP tax bill. (Tom Williams/CQ Roll Call)

Republican tax writers signed off Friday on a compromise plan to overhaul the tax code, bringing House and Senate negotiations to a close and setting up final votes on the legislation early next week.

The tax conference agreement was set to be released Friday at 5:30 p.m. Some key details are already known, like a proposed corporate tax rate of 21 percent; a top individual rate of 37 percent; and a 20 percent deduction for “pass-through” business income.

Minnesota Lt. Gov. Tina Smith Picked to Replace Al Franken in Senate
Says she will run for election in 2018 in Likely Democratic race

Lt. Gov. Tina Smith, seen here with former Vice President Walter F. Mondale, will fill the Senate seat vacated by DFL Sen. Al Franken. (Tom Williams/CQ Roll Call file photo)

Minnesota Gov. Mark Dayton on Wednesday said he would appoint Lt. Gov. Tina Smith to fill the Senate seat being vacated by outgoing Sen. Al Franken, who has yet to announce his resignation date. 

Smith said Wednesday she will run for the remainder of Franken’s term, which is up in 2020. The special election will be held concurrently with next year’s midterms, when Democratic-Farmer-Labor Sen. Amy Klobuchar also faces voters.

Minnesota Governor to Announce Senate Appointment Wednesday
Senator Al Franken still hasn’t said when he’s resigning

Minnesota Sen. Al Franken, seen here leaving the Capitol on Dec. 7 with his wife, Franni, after announcing he’d resign last week, hasn’t set a date for his resignation. (Tom Williams/CQ Roll Call)

Minnesota Gov. Mark Dayton on Wednesday will announce his selection to fill the seat of Sen. Al Franken, who has yet to set a date for his resignation. 

Dayton has been expected to appoint Lt. Gov. Tina Smith, his former chief of staff, to the seat. She’d have the option of running next fall to fill out the rest of Franken’s term, which is up in 2021. 

Businesses Say Foreign Payment Treatment May Breach Treaties
Provisions in House and Senate tax bills draw pushback

Ohio Rep. James B. Renacci says issues with the provisions in question must be resolved in conference negotiations. (Bill Clark/CQ Roll Call file photo)

Business advocates are warning that provisions in the House and Senate tax bills aimed at discouraging offshore migration of multinational operations could trigger trade disputes and retaliation by trading partners because they conflict with tax treaties.

The Semiconductor Industry Association, representing big chipmakers such as Intel Corp., Texas Instruments Inc. and Qualcomm Inc., told Republican leaders in a Dec. 5 letter that it has trade-related concerns about two House and Senate proposals that target multinationals’ payments to foreign affiliates, including payments for parts and other goods used in manufacturing, royalties, interest and management fees.

The Unkindest Cut: How to Pay for Tax Overhaul Sweeteners
Hundreds of billions of dollars needed to pay for sought-after changes

Ways and Means Chairman Kevin Brady is among the top negotiators in the House-Senate conference committee on the GOP’s tax overhaul. (Tom Williams/CQ Roll Call)

As the House and Senate prepare for a conference committee on the Republican tax overhaul, the two chambers face the challenge of reconciling stark differences, and where to find billions of dollars they may need to smooth things over. 

Among the most significant discrepancies are the treatments of pass-through businesses, the estate tax and the corporate alternative minimum tax. House Republicans are also considering a provision to further scale back the proposed trimming of the state and local tax deduction.

Partial Repeal of Corporate Alternative Minimum Tax an Option, Thune Says
‘There are different ways you could structure a repeal’

Sen. John Thune, R-S.D. (Bill Clark/CQ Roll Call file photo)

Lowering the alternative minimum tax rate for corporations in the Senate’s bill could be one way to address concerns among the business community, Republican Conference Chairman John Thune said.

“There are different ways you could structure a repeal — or a partial repeal,” the South Dakota Republican said Wednesday. “If you adjust the rate, take the rate down. And so it’s all scalable.”

Victorious McConnell Praises GOP Team Effort on Taxes
The leader says he does not expect a tough conference

Senate Majority Leader Mitch McConnell, R-Ky., leaves the Mansfield room after the Senate Republicans' lunch with President Donald Trump on Tuesday. (Bill Clark/CQ Roll Call)

Updated at 2:28 a.m. | This time, just about everything went according to plan for Senate Majority Leader Mitch McConnell.

The Kentucky Republican, who months ago came up just short of passing a bill through his chamber to roll back the 2010 health care law, got 51 Republicans behind the sweeping tax overhaul that passed in the wee hours of Saturday morning.

Photos of the Week: Tax Bill and Sexual Harassment Allegations Dominate on the Hill
The week of Nov. 27 as captured by Roll Call's photographers

The Capitol dome is seen in a reflection on a television news camera outside the Capitol on Friday. (Bill Clark/CQ Roll Call)

Wheelin’ and Dealin’ McConnell in Full Force on GOP Tax Bill
Successful vote on the motion to proceed ignites last-minute scramble to 50 votes

Senate Majority Leader Mitch McConnell is assembling the votes for the GOP tax overhaul. (Bill Clark/CQ Roll Call)

Senate Republicans on Wednesday evening got the necessary votes to launch debate on the party’s measure to overhaul the U.S. tax code. But this came after a day of backroom deal-making by Senate Majority Leader Mitch McConnell that could lead to several major changes to the current version of the legislation.

The pressure on the Senate GOP is sky-high as the party looks to achieve at least one major legislative victory during President Donald Trump’s first year in the White House.

In House, California Dreamin’ on Tax Deductions
Tax break for state income taxes are back in negotiations on measure

House Majority Leader Kevin McCarthy and South Dakota Rep. Kristi Noem leave a House Republican Conference meeting in the Capitol on Wednesday. (Tom Williams/CQ Roll Call)

House Republican leaders and tax writers are working to at least partially revive the state and local income tax deduction in a bid to solidify support from California GOP lawmakers in any final tax bill.

House Majority Leader Kevin McCarthy, himself a Golden State Republican, said Wednesday the proposal he’s discussing to restore the income tax deduction would be as an alternative, not in addition, to the break for property taxes.