Senate, House to work out differences in tax overhaul bills Video

Transcript for Senate, House to work out differences in tax overhaul bills

Next tonight, a critical moment for the tax reform showdown on capitol hill, the senate will now work with house lawmakers to pave the way for president trump to make good on his pledge to deliver sweeping tax cuts by Christmas. But Republicans are still facing questions. Stephanie Ramos with the reality check. Reporter: The senate passing sweeping tax bill in the dead of the night. The tax cuts and jobs act, as amended, is passed. Reporter: Leaving Democrats fuming about those hand-written changes. Can you tell me what that word is? If you can, you have better eyes than me. Reporter: Now Republicans racing to get the final bill on the president’s desk before Christmas. Now we go on to conference and something beautiful is going to come out of that mixer. Reporter: There are some major differences between the house and senate bills. Both bills would reduce the corporate tax rate to 20%. But the timing of when the cut kicks in is different. The president now signaling he’s open to slightly raising that corporate tax. Business tax, all the way down from 35 to 20, it could be 22 when it comes out, it could also be 20. Reporter: Other key differences, the mortgage interest deduction for new homes capped at $500,000 in the house bill. The senate keeps it at $1 million. The medical expense deduction, the house bills repeals it. The senate bill expands it. And the house bill makes the individual tax cuts permanent. The senate bill would allow them to expire in seven years. Why not, in putting this bill together, make it so that you could say everybody in the middle class will get a tax cut that’s permanent? Well, it’s impossible to do that. You can’t craft any bill that would guarantee no one was in a special category that might get a tax increase. Reporter: Graduate students marching this week over the house bill’s provision to repeal deductions for student loan interest. It will effectively make graduate education inaccessible to all but the upper class. Reporter: So how much will this cost? Many Republicans are arguing the bill will pay for itself by creating economic growth. But the nonpartisan joint committee on taxation says the senate bill will add $1 trillion to the deficit over the next decade. Tom? Stephanie, thank you.

This transcript has been automatically generated and may not be 100% accurate.

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