What tax reform plan will President Trump sign when both congress houses approve the final version?

Let's talk about something important that is happening right now in a congress controlled by the Republicans, when the press is focused on the president's legal problems.

The congress under the leadership of Mitch McConnell and Paul Ryan will use all the legislative tricks at their disposal to finalize the final version of the new tax reform plan without any kind of serious scrutiny by the press, but worst of all without the American people really knowing what is in that tax bill.

"In the next two weeks both legislative bodies should discuss their differences and have this project ready before the end of this year."

But for that to happen first both houses in the congress must go to conference to discuss the difference that exists between the Senate version with the version of the House of Representatives. Difference which may prevent tax reform from being a reality for President Trump to turn into lay with his signature if both congress houses do not reach an agreement.

Some point to which both cameras must agree, from my point of view would be.

• Corporate rate delay.  The upper chamber of congress wants the 20% reduction to corporations to take effect next year, while the lower house bill wants it to come into effect immediately.

•  Elimination of the estate tax. The House Republicans want to immediately duplicate the exemption from the inheritance tax and also want to get rid of the tax completely in just six years. On the other hand, the bill of the Senate demanded the repeal of SALT. But it was changed to preserve a property tax deduction of only $ 10,000.

• Repeal of the individual mandate. The derogation is intended to be a way to offset the cost of the tax bill of this new tax reform which would produce an increase in the deficit of 1.4 trillion. Senators assume that if fewer people qualify for subsidies, these people would buy insurance if they are not subject to a fine, which is only a wish in the minds of these senators. On the contrary the version of the camera of representatives does not mention this  derogation of the individual mandate to buy health insurance. 

• Expands the child tax credit. The Republican Senate Bill increases the child tax credit to $ 2,000 per child, of $ 1,000, above the $ 1,600 proposed in the bill of the House of Representatives.

• Sunset on individual rates. When we talk about tax cuts and benefits for individuals in the Senate version, especially the middle class, many of them will end before December 31, 2025, which makes this tax reduction as a temporary tax policy, contrary to the deduction of corporate taxes which is permanent.

For anyone who did not know the "sunset" provision was one of the most criticized provisions of the Senate bill by members of the House Republican Study Committee. But if when both houses meet in a conference as expected and change, that could push the total cost of the tax reform plan above the $ 1.5 trillion dollar limit.

Under budget rules they plan to use to pass a bill, it cannot generate more than $1.5 trillion in budget deficits over a decade.

What tax reform plan will President Trump sign when both congress chambers approve the final version? Any plan that reaches the White House from Capitol Hill.

Everything that the president and the republican legislators are doing all this for two reasons:

 First: Is to please their economic donors who supported the Republican candidates during the election campaign, especially the people of Wall Street.

Second: As a political reaction to satisfy the ego of President Donald Trump who needs to show some kind of positive result in the first year of his administration. He will sign anything without really knowing what this tax reduction plan means for the nation's long-term economy.