- Sen. Steve Daines announced he is a “no” on the current version of the Senate’s Tax Cuts and Jobs Act.
- Daines joins Ron Johnson as public Republican defectors on the tax bill.
- Daines and Johnson are both concerned about the treatment of pass-through businesses compared to corporations in the bill.
Sen. Steve Daines of Montana on Monday became the second Republican senator to publicly come out against the current iteration of the Senate GOP tax bill.
A representative for Daines said the senator is a “no” on the current version of the bill but “remains optimistic and is continuing to work with colleagues.”
Daines joins Sen. Ron Johnson as Republicans opposed to the current form of the tax legislation. Republican leaders, who are hoping to hold a vote on the bill later this week, can only afford to lose two GOP votes.
Daines’ office said his primary concerns come over the treatment of pass-through businesses, such as limited liability companies and S-corporations, when compared to larger corporations.
“Senator Daines has concerns with how the tax bill looks at Main Street versus Large Corporations,” his spokesperson told Business Insider. “The senator wants changes to the tax cut bill that ensures Main Street businesses are not put at a competitive disadvantage against large corporations.”
Those concerns mirror Johnson’s own reasons for coming out against the Tax Cuts and Jobs Act (TCJA).
Currently, owners of pass-through businesses who book profits as their personal income can deduct 17.4% of their earnings from their tax bills. GOP leaders are reportedly considering increasing this deduction to 20% in order to satisfy Daines and Johnson.
On the other hand, corporations would see their federal tax rate drop to 20% from the current 35%.
Daines also tweeted earlier Monday that he spoke with President Donald Trump about the issues over the weekend.
“It was good to speak with @realDonaldTrump this weekend working through these concerns,” Daines said in reply to a tweet from Trump about the tax bill.
Business Insider Emails & Alerts
Site highlights each day to your inbox.