Republicans’ proposals to cut US taxes and reform the tax system were thrown into turmoil last night after a non-partisan committee warned the plans would create a budget shortfall.
The Joint Committee on Taxation revealed the Republican measures would generate $407bn in additional tax revenue as US ecnonomic growth was lifted.
However, the tax cuts envisioned in the bill would reduce the tax intake by $1.5tn, creating a huge budget shortfall.
The vote on the bill that had been scheduled for Thursday was postponed as Republicans rushed to find a way to bridge the gap, which could see the bill watered down.
There was speculation that the Senate could vote on the bill on Friday instead.
Among the original proposals was the controversial measure to reduce the US corporate tax rate from 35% to 20%.
Earlier on Thursday, the tax plans received a boost after Republican Senator John McCain pledged to support the bill.