This GOP senator won't support the tax cut bill right now. Here's why

Tax Reform FOXBusiness

Senate progressed a lot on tax reform: Sen. Daines

Sen. Steve Daines (R-Mont.) explains why he does not plan to vote for the Senate's GOP tax reform plan and what he would like to see changed in order to change his vote to a 'yes'.

President Donald Trump’s efforts to sway Republicans on Capitol Hill to support the Senate’s tax reform bill on Tuesday may have proved unfounded: Despite the president’s lobbying, Sen. Steven Daines said his decision to vote “no” won’t change unless the bill itself does.

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The Montana Republican joined Sen. Ron Johnson (R-Wis.) as the second GOP Senator to voice his dissent to the bill, citing its somewhat-unfriendly rates for pass-through businesses. Congress now has 11 joint working days to pass the tax overhaul plan by 2018, a feat that is concerning some, given the razor-thin GOP majority in the Senate and the continued uncertainty of how some Republicans will vote.

“This is about ensuring that our pass-throughs, these main street businesses, get treated more fairly in this tax bill,” Daines told FOX Business’ Melissa Francis Tuesday. “We’re getting very, very close.”

Party-infighting didn’t stop the Senate Budget Committee, however, which voted 12-11 along party lines to approve the package of tax cuts. That cleared the way for the entire Senate to vote, which could happen as soon as Thursday, are a positive sign for Trump and Republican leadership who have been adamant that tax reform will be passed by Christmas.

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The House already approved its own version of the tax reform legislation. If the Senate approves its version, the two bills would need to be reconciled before Trump could sign-off on any legislation.

At least six GOP senators have raised concerns about the Senate tax bill that, if passed, would slash the corporate tax rate from 35% to 20% after a one-year delay and would entirely eliminate the state and local tax deductions, a provision that’s popular among high-income states, namely New Jersey, California and New York.

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Pass-through businesses, a business that pays taxes based on the owner’s income rather than the corporate tax rate, would pay a rate of 30% under the Senate bill. Those types of businesses account for more than 90% of businesses in the U.S and are currently subjected to a top marginal tax rate of 44.6%.

Daines said he’s spoken with Trump, Vice President Mike Pence and White House economic advisor Gary Cohn about modifying tax reform to include a better break for main street businesses. If those businesses -- which he noted provide a significant amount of economic growth within the private sector compared to large corporations -- “get treated more fairly” then the Senate will move closer to approving the legislation.

“We need to get a tax cut bill passed and on the president’s desk,” he said. “I’m confident that we’re going to get there.”