By Friday evening, 51 of 52 GOP senators said they would support the proposal. At least five Republicans who started Friday undecided will vote for the bill: Sens. Steve Daines of Montana, Ron Johnson of Wisconsin, James Lankford of Oklahoma, Jeff Flake of Arizona andSusan Collins of Maine.
The near-unanimous GOP support came only after a series of tweaks to appease senators — and even more changes to pay for those revisions.
Here are the Friday changes expected to be included in the Senate bill, which has not yet been released:
- Pass-through deduction: To appease Daines and Johnson, the bill would now allow business owners to deduct 23 percent of pass-through income. The Senate initially proposed a deduction for 17.4 percent of income. Pass-through entities are taxed at individual tax rates.
- State and local deductions: The Senate plan would make up to $10,000 in state and local property taxes deductible. Collins urged the change, which makes the Senate proposal match the legislation already passed by the House.
- Alternative minimum tax: The alternative minimum tax is expected to be retained in some form on both the individual and corporate sides, according to two senators. The initial Senate plan repealed the tax. The measure aims to guarantee that businesses or wealthy individuals pay a minimum tax.
- Business expensing: The initial bill let businesses write off the full cost of expenses like equipment for five years. After that, the benefit would now phase out instead of being eliminated immediately, according to Flake and Sen. Mike Rounds, R-S.D.
- Medical cost deduction: Collins also pushed to expand the deduction for health-care costs that are not reimbursed. The bill would now lower the threshold for the deduction to 7.5 percent from 10 percent of income, according to Collins.
- 401(k) contributions: The Senate plan would also scrap a previous proposal to eliminate so-called catch-up contributions to retirement accounts on a pre-tax basis, Collins said.