WASHINGTON — House tax reform negotiators presented a sweeping compromise offer today that would keep IRA deductions for some people but would end all IRA tax breaks for most single workers earning $30,000 and couples with incomes of $50,000.
The plan, crafted by Democrats, was outlined today to Republican members of the House tax reform bargaining team.
It would keep the low tax rates of 15% and 27% included in the Senate bill, but, in order to save some individual deductions, would raise corporate taxes $141.7 billion in five years--far beyond what the Senate wants.
Republican members of the Senate delegation have already attacked the plan for being anti-business, and some have said they would rather have no tax reform bill than have the latest idea floated by the House.
Completely New Plan
House members and aides have indicated that much of the new House proposal, which basically amounts to a completely new tax overhaul plan, would show senators that if they want to keep their low tax rates, they must swallow some very stiff business taxes.