Intense sprint toward a landmark tax overhaul

House Republicans set the stage Thursday for an intense sprint toward a landmark tax overhaul, overcoming internal dissension and Democratic opposition to move forward with legislation that could cut revenue by up to $1.5 trillion over the coming decade.

Budget legislation passed Thursday will allow the GOP to pass its tax plan without Democratic help, but the close 216-to-212 House vote reflected ongoing tensions about the tax push among Republicans — and many expect the qualms to grow once draft legislation is released next week.

Leaders are aiming to pass tax legislation through each chamber before Thanksgiving, with the differences to then be hashed out before year's end, and then send a bill to President Trump for his signature.

At issue are significant changes to the individual tax code that stand to affect virtually every American taxpayer, including the elimination of personal exemptions and many popular itemized deductions, an increase in the standard deduction and a reduction in the number of tax brackets.

On the corporate side, Republicans are pursuing a dramatic rate cut, from 35 percent to 20 percent, a complete overhaul of how overseas profits are taxed and a new treatment for business profits that are "passed through" to be taxed as individual income.

Each provision touched by the GOP plan carries the potential to generate opposition that could scuttle the whole effort, but party leaders hailed Thursday's House vote as proof that Congress would not be sidetracked by parochial concerns.

"It shows the strength of the willingness to get tax reform done," said House Majority Leader Kevin McCarthy (R-Calif.