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House committee approves revised tax overhaul bill

A House committee voted along party lines Thursday to approve the Republicans' sweeping tax overhaul bill -- with some last-minute changes -- a crucial step toward seeking the chamber's full passage by Thanksgiving.

"Americans deserve a new tax code for a new era of prosperity, and today we deliver," said Rep. Kevin Brady (R-Texas), chairman of the House Ways and Means Committte.

The panel's approval by a 24-16 vote came as the Senate unveiled its own version of tax legislation that contains the same centerpiece -- a large cut in the corporate rate -- but has significant differences that will have to be worked out in the coming weeks.

Republicans scrambled Thursday to revise the House measure after changes the committee made this week pushed the cost of the bill over the limit needed to pass it through the Senate on a simple majority vote.

Brady proposed a last-minute package of changes to raise more revenue and address concerns by groups such as the National Federal of Independent Business.

Among the changes were restoring the tax credit for parents who adopt children, creating a new lower 9% tax rate for the first $75,000 in business income for small pass-through businesses that currently pay the individual rate, and a number of other changes to corporate tax provisions.

Jack Mozloom, a spokesman for the NFIB, said the group supported Brady’s change and now intends to back the House bill “barring any surpises.”

Last week, the NFIB said it could not support the bill because the new top rate of 25% for pass-through businesses wouldn’t be a benefit to most of its members, who already pay no more than that rate.

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