>> Senate Republicans throwing Wall Street a curve, rolling out a tax reform plan delaying a corporate tax cut until 2019. The move setting up a standoff with GOP lawmakers in the House, who pushed ahead with their own bill cutting business taxes right away.>> Americans deserve a new tax code for a new era of prosperity.
>> Reporter David Morgan is on the story.>> The House bill is very straightforward when it comes to corporate taxes. It cuts the corporate income tax rate to 20% from 35%, happens immediately. The Senate, they cut the corporate tax rate to 20% as well but they delay it for one year, in order to raise revenues to pay for tax reform overall.
>> But investors worrying that could prompt companies to delay plans as they wait for rates to come down, the split over corporate taxes just one of several differences separating the two plans. The House and Senate also going their separate ways on personal taxes.>> The House plan reduces the number of individual income brackets from seven to four.
They have a top bracket of 39.6% for people who earn more than a million dollars a year. The Senate takes a completely different approach. They maintain the current seven tax brackets and the top rate would go down for 38.5%.>> The Senate plan would keep mortgage interest deductions intact up to $1 million, double the House plan, but would eliminate the current deduction for state and local taxes.
But Morgan says having competing plans in the House and Senate doesn't mean tax reform is in trouble.>> Because the stakes are so high, the political stakes are so high for Republicans, they failed to overturn Obamacare, they've seen election losses, which have put them on notice. Now they need to pass tax reform.
The question is which version is more likely to succeed, and the smart money appears to be on the Senate bill.>> One thing the House and Senate plans have in common, they both would add $1.5 trillion to the national debt over the next ten years. Democrats in Congress are united against the GOP push for tax reform
>> They've concocted a bill grounded in tax cuts for big corporations and the very rich.>> The House plan could come to a vote as soon as next week.