maybe offering something more enticing to high end taxpayers beyond the 38.5% top rate. have you heard any of the above or for that matter the president s thinking or any of the above? it s interesting to see the white house s evolution on thinking about the corporate tax rate in particular. that s one of president trump s highest priorities. the first when the rubio lee amendment came out, the amendment that would raise the tax rate to 22% to pay for the child tax credit. the white house is against that. now that the bill has moved into conference and there s talking about raising it to 22%, being one of the only ways to get a consensus, the white house has acknowledged that 22% is better than 35%. so the white house recognizes that they may need to make concessions on things that they thought they would see in the final product just to get a bill on trump s desk.
see the growth they wanted and it wasn t until that occurred that they saw the growth that they had anticipated. neil: you re right. it cost them more than a couple dozen seats in the house in 82. you re right. yes. neil: so that s something that you don t want to budge on. you don t want to go higher on the corporate rate as well. the senate has been talking about wanting to lower the top rate more than you do. the house plan doesn t call for that at all. they bring it down to 38.5%. how do you feel about that? that is room for discussion and may be part of their plan. we went back and forth on that within their own body. we also knew that we were running into a place that we were the dollars were not available to do that and we need to focus on that area in the middle. now that there s the individual mandate repeal, we have some extra dollars that we can use. we re going to be looking at maybe that being one of those
38.5% is the top bracket in the senate. the senate version also keeps popular tax breaks that the house gets rid of like deductions for mortgages, medical expenses and student loans. one thing both versions agree on, permanent corporate tax cuts, the gop argues that will mean higher wages for you. there is no guarantee. the gop argues that will mean higher wages for you. there is no guarantee. it will raise taxes for some people right away for those earning less than $30,000 a year. by 2027, all low income and most middle class americans end up paying more if you look at the analysis from the cbo and the joint committee on taxation. do they keep that, do they justify that? is that the biggest obstacle you think? i thought the biggest obstacle is going to be the 20% corporate rate. now the president said he would accept 22%. that s out of the way. i think health care is the hard part here. something is getting through. looks like billy bush is done laying low in the wake of that
you have mortgage interest deduction reduced in the house, the senate mortgage interest reduction, the same 7 tax brackets topping rate out at 38.5 for corporate and 20% starting in 2019. i actually did read all of them for you there. [laughter] heather:ly start with you, what do you think is the most significant difference? i think the most significant difference is the problem with senate vote, you were talk about things that were written in margins, handwritten in margins, in the middle of the dark of the night, adds for trillions to our debt and obviously is a bigger concern, fundamentally this tax reform bill raises taxes not cuts taxes for 2 out of 3 hard-working americans which i m defining as hard-working americans which is really the middle class. in order to be able to avoid government shutdown and make sure that we are able to protect the middle class that we are having here, we really have to kind of go back and expose what s happening here and what
35%. i remind people the effective rate most companies pay tends to be 18.6%. so we ve not eliminate the tax holes. much to be debated. and proposed the highest tax bracket goes down from 39.6% to 38.5%. that s the marginal amount the wealthiest pay on the highest taxes they pay. obamacare is another issue. the house bill doesn t touch it but the senate bill abolishes the individual mandate congress estimates that this provision alone is going to cause 13 million more americans to be uninsured by 2027 and premiums would be 10% higher than they would be under current law. taxpayers will also be able to deduct property, state and local taxes, but the deduction capped