Senate Republicans passed their original tax bill by a vote of 51-49 - with Rubio's support.
The GOP plans to muscle the bill through Congress next week. The reduction to the corporate rate, unlike the individual rates, would be permanent. House Republicans tried to eliminate the tax break. The Senate version lowered it to 38.5 percent.
The House Ways and Means Committee and the Senate Finance Committee published the conference version of the bill, promising to "make the tax code simpler and fairer", on Friday afternoon.
Republican legislators haggled over the Tax Cuts and Jobs Act up to the last minute on Friday, garnering support that very day from holdouts Senators Bob Corker, R-Tenn., and Marco Rubio, R-Fla. The Florida senator's (cogent) argument being that working parents who don't earn enough money to pay much federal income tax - but are still subject to payroll taxes - shouldn't get a smaller child-care subsidy than millionaire couples do.
In addition to lowering individual rates, the bill doubles the standard deduction, allows for the deduction of state and local taxes up to $10,000, expands the child tax credit from $1,000 to $2,000 - which is fully deductible up to $1,400 for families making under $400,000 - and allows homeowners to deduct mortgage interest on their first and second homes up to $750,000.
Rubio's remarks sparked a frenzied effort to amend the tax bill to secure the senator's support. But Rubio is (reportedly) satisfied with the compromise.
Local and state taxes will still be able to be written off, with a limit of $10,000. Rob Portman of OH, one of the Republican negotiators on the bill. The deduction is especially important to residents of high-tax states such as New York, New Jersey and California.
"This is happening. Tax reform under Republican control of Washington is happening", House Speaker Paul Ryan told rank-and-file members in a conference call on Friday. The cap would apply to any combination of property and either income or sales taxes. Corker's office made this announcement on Friday, shortly before the final text of the bill was due to be released at 5:30 p.m. EST. The bill that passed the House would have repealed this restriction. Repealing the tax penalty for going without insurance will decrease participation in Obamacare - and thus, decrease the amount the government spends on health insurance subsidies by roughly $300 billion over the next decade.
However, a study by the nonpartisan Tax Policy Center of the Senate bill - which is likely to bear the most resemblance to what comes out of conference - found that 62 percent of the benefits from the tax cuts would be accrued by income earners in the top 1 percent, while 0.1 percent of income earners would suck up 42.3 percent of the benefits from the tax overhaul. The threshold rises to 10 percent beginning in 2020.
A slightly less generous mortgage interest deduction.