Republicans’ Ticking Tax Clock(s)

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Authors of an emerging House-Senate tax compromise have been focusing on sweeteners — such as cutting the top individual rate for the highest earners to 37 percent — to nail down support from their fellow Republicans.

As they scramble to deliver legislation to President Donald Trump’s desk by the end of next week, they’re poised today to unveil the full details of their latest plan. Republican leaders have kept what they are offering largely under wraps, partly because they have a slim majority in the Senate and want to stymie last-minute demands — such as the boost in the child tax credit Florida Senator Marco Rubio said is needed to secure his vote.

Following this week’s loss in Alabama, Republicans are more desperate than ever to enact tax cuts to try to boost their chances in next year’s midterm elections.

Even if they succeed, their signature initiative runs the risk of exacerbating the lopsided economic recovery that has sent markets soaring as wage growth has been left in the dust. Elected on a promise of better jobs and pay, Trump and his fellow Republicans have a lot riding on voters actually feeling the largely trickle-down benefits of their efforts — and fast. A referendum on their leadership is just 11 months away.

Republicans’ Ticking Tax Clock(s)

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Republicans’ Ticking Tax Clock(s)

To contact the author of this story: Kathleen Hunter in London at khunter9@bloomberg.net.

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