We have different rate structure than House tax plan

Republican Sen. John Thune told CNBC the tax rate “structure” from the Senate’s reform bill, set to be unveiled Thursday, will differ coming from the House plan.

The House bill proposes to cut the number of income tax brackets coming from seven to four: 12 percent, 25 percent, 35 percent along with 39.6 percent.

“We do have a different rate structure than what we have today, along with we do have a different rate structure than what the House plan has,” Thune told “Squawk Box.”

He did not provide specifics.

As chairman of the Senate GOP conference, the South Dakota lawmaker is usually the third-ranking Republican from the Senate.

Thune also declined to comment on whether the Senate bill would likely delay implementing certain measures, such as the corporate tax cut, saying “of which’ll all come out later.”

A few hours after Thune’s appearance, a source told CNBC of which the Senate tax plan would likely delay a corporate tax cut until 2019. On Wednesday, the nonpartisan Congressional Budget Office said the GOP bill would likely increase the federal budget deficit by $1.7 trillion over 10 years.

“We’ve looked at different options on of which,” Thune told CNBC on Thursday, adding he’s “happy” with what the Senate has done in regards to the rate structure.

The highlights of the Senate plan will be similar to the House bill, he said.

“We’ll take a slightly different approach on a couple of the issues,” he added. “although from the end, we all want to get to the same place.”

“What we try to do is usually ensure there’s progressivity from the code, of which the tax burden is usually similar to what the item is usually today, along with … the relief flows evenly,” he said.

Senate Republicans are preparing to put out their tax plan two days after the GOP took a drubbing in off-year elections.

Democrat Ralph Northam defeated Republican Ed Gillespie in Virginia’s hotly contested race for governor, which many analysts viewed as a referendum on President Donald Trump.

In fresh Jersey, Democrat Phil Murphy won the gubernatorial race against Republican Lt. Gov. Kim Guadagno, who was No. 2 to the unpopular, outgoing Gov. Chris Christie.

Democrats, who did well around the country in some other state races along with locally, were looking ahead to next year’s midterm House along with Senate elections with renewed optimism.

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