GOP reaches tax deal to slash individual, corporate rates

Paul Ryan, Mitch McConnell
This Sept. 27, 2017 file photo shows Senate Majority Leader Mitch McConnell, R-Ky., center, joining Speaker of the House Paul Ryan, R-Wis., and other GOP lawmakers to talk about the Republicans' proposed rewrite of the tax code for individuals and corporations, at the Capitol in Washington. (AP Photo/J. Scott Applewhite, file)

WASHINGTON (NBC News) – House and Senate Republicans have reached an agreement in principle on their sweeping tax package which will slash individual and corporate rates, according to White House and GOP sources.

Republicans hope to have a vote in Senate first, then the House once the details are ironed out.

They hope the legislation will be done in Congress by next Wednesday and then sent to President Trump for his signature.

Two Republican sources confirmed to NBC News that the corporate tax rate would be cut to 21 percent, while the top tax rate for individuals would drop to 37 percent from 39.6 percent.

Under the deal agreement, the mortgage interest deduction would be allowed on loans up to $750,000, the source said.

A tax deal would be Trump’s first legislative achievement — nearly 11 months after he was sworn into office.

In remarks at the White House Wednesday afternoon, Trump called the tax bill “the biggest thing we’ve worked on” and declared it would be “bigger than anything ever done in this country” — even larger than President Ronald Reagan’s massive tax cuts.

The deal came just hours after Democratic Senate Minority Leader Chuck Schumer called on Republicans to “hit pause” on their tax bill until Alabama winner Doug Jones takes his seat.

Schumer said it would be wrong for the newly elected Senator not to have an opportunity to vote.

Republicans have been scrambling to finalize the sweeping tax bill within the next week by reconciling differences in the House and Senate plans and getting the legislation to the President for his signature.

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