The US Senate passed on Saturday the Tax Cuts and Jobs Act. That makes for one of the final steps for the Congress to implement President Trump’s historic tax legislation, which incidentally makes for one of his core campaign promises. The Tax Cuts and Jobs Act was passed by the US Senate via a very closed vote, almost entirely along party lines: 51-49. With VP Mike Pence presiding over the entire process, the “McCain” of last night’s vote was Sen. Bob Corker (R-TN), the only Republican who voted against the tax cut bill. Well, him and 48 Democrats.
Other reluctant Senators, such as Jeff Flake (R-AZ) and Susan Collins (R-ME) decided to support the bill following last-minute modifications. Both received commitments from the White House and the Republican leadership with regard to pursuing a permanent solution (deportations maybe?)for the DACA extravaganza (Flake), whilst Collins won a provision that will allow for state and local taxes to keep the deduction (SALT).
The Senate tax bill eliminates the individual mandate to purchase health insurance under Obamacare and it also retains the current 7 bracket income tax system (the House version only has 4 brackets). The lowest tax bracket would fall to 10% while the wealthiest Americans will pay 38,5%. Under the new Senate bill, the child tax credit is now $1650 per child from the previous $1000 and it also doubles the standard deduction for individuals to $12,000, and $24,000 for married couples.
While the House passed their own version of the Tax Cut Bill earlier in November, now it’s time for a conference committee to be summoned in order to reconcile the issues/differences between the 2 bills. Then, the House and the Senate will have to draft a unified bill and the 2 chambers will have to pass the same/identical bill again, then President Trump would have to sign the Tax Cuts and Jobs Act into law.
The GOP establishment and especially Senate Majority Leader Mitch McConnell are desperate to pass this essential piece of legislation after their failure to repeal/replace Obamacare. Trump has said that “This week’s vote can be the beginning of the next great chapter for the American worker.” and passing the tax-reform bill would ensure a Merry Christmas for Americans.
Hard to believe America’s business tax rate was ever 35% to begin with. Huge corporations like high taxes because it eliminates competition & they just park everything offshore.This will be a huge boost to the middle class and medium sized companies who actually employ Americans.