Several hurdles remain, however, including resolving differences with the House version of the tax bill, which differs in significant ways from that of the Senate. Both bills cut taxes on businesses and individuals, but differ in the scope and timing of those cuts.
The Senate bill would cut the corporate tax rate to 20 percent from a top rate of 35 percent. For individuals, it would make tax cuts temporary and creates seven income tax brackets, with a bottom rate of 10 percent and a top marginal rate of 38.5 percent, down from the current rate of 39.6 percent.
Representative Kevin Brady of Texas, the Republican chairman of the Ways and Means Committee, said that he felt encouraged that the two chambers would be able to align their bills but that the House would not simply pass the Senate legislation.
“For as much common ground as we have, there are some areas where we are taking different approaches that will be worked, and can only be worked out, in a conference,” Mr. Brady said.
Lawmakers are also awaiting a report from the Joint Committee on Taxation that would show the effects of the proposed tax cuts on the economy. That analysis is important, since it will indicate the extent to which the…