WASHINGTON (AP) — The Latest on the Republican tax overhaul (all times local):
The IRS says taxpayers could begin seeing less money withheld from their paychecks “as early as February” if Congress passes a Republican tax overhaul plan this month.
The agency says in a statement released Wednesday night that it “is continuing to closely monitor the pending legislation in Congress,” and “taking the initial steps to prepare guidance on withholding for 2018.”
The IRS says it expects to issue new withholding guidance in January reflecting the new legislation.
The bill would provide generous tax cuts for corporations and the wealthiest Americans. Middle- and low-income families would get smaller tax cuts, though President Donald Trump and GOP leaders have billed the package as a huge benefit for the middle class.
Congressional aides say negotiators have removed several controversial provisions from sweeping tax legislation, including one that would have eliminated the deduction for interest on student loans and another deduction for medical expenses.
Two congressional aides also say the bill will no longer start taxing graduate-school tuition waivers. The aides spoke on condition of anonymity because they were not authorized to publicly discuss private negotiations.
GOP leaders in the House and Senate have reached an agreement in principle on the biggest rewrite of the nation’s tax laws in more than 30 years, though the legislation is still being finalized Wednesday.
Advocacy groups have complained about the provisions that were removed, especially with college graduates face mounting debt from student loans.
— Stephen Ohlemacher