According to the Associated Press, the GOP amended tax bill has passed the House and is on its way to the president's desk.
Republicans in Congress have delivered an epic overhaul of U.S. tax laws to President Donald Trump, bringing generous tax cuts for corporations and the wealthiest Americans, and billions to be added to the national debt.
The $1.5 trillion package, billed as a huge boon for the middle class and a spark to economic growth, provides smaller tax cuts for middle- and low-income families.
The GOP-dominated House voted - a second time - along party lines on Wednesday to approve the complex legislation, following a narrow vote after midnight in the Senate.
The measure slashes the corporate income tax rate from 35 percent to 21 percent. The tax cuts for business are permanent, but reductions for individuals and families expire after a decade. The standard deduction used by around two-thirds of Americans will nearly double to $24,000 for married couples.
The Senate voted to pass the GOP tax bill Wednesday night 51 to 48. They also voted strip three pieces of the GOP tax bill that were deemed to violate Senate rules Wednesday night 51 to 48.
The House approved the legislation Tuesday. But this means the House will have to vote again on the legislation once it's been amended and approved by the Senate.
Senate passage was expected Tuesday night or early Wednesday. GOP House Majority Leader Kevin McCarthy's office says the House would reconsider the bill Wednesday morning and send it to President Donald Trump for his signature.
Democrats said the Senate parliamentarian had found three items that violated Senate rules.
These included one provision that would let families use tax-advantaged 529 accounts for home-schooling expenses.
The problem was revealed by Vermont independent Sen. Bernie Sanders and Oregon Democrat Ron Wyden.
The $1.5 trillion package would provide steep tax cuts for businesses and the wealthy and more modest cuts for middle- and low-income families. The business tax cuts would take effect in January. Workers would start to see changes in the amount of taxes withheld from their paychecks in February.
The bill would nearly double the standard deduction used by most taxpayers, while those who itemize would lose some deductions.
Congratulations to Paul Ryan, Kevin McCarthy, Kevin Brady, Steve Scalise, Cathy McMorris Rodgers and all great House Republicans who voted in favor of cutting your taxes!
— Donald J. Trump (@realDonaldTrump) December 19, 2017
It also permanently slashes the tax rate for corporations from 35 percent to 21 percent and reduces levies on the wealthiest Americans, while making more modest tax reductions for most others. The tax cuts for individuals are temporary, expiring in 2026. It doubles the standard deduction used by about two-thirds of U.S. households, to $24,000 for married couples, also ending in eight years.
The $1,000-per-child tax credit doubles to $2,000, with up to $1,400 available in IRS refunds for families who owe little or no taxes. Parents would have to provide children's Social Security numbers to receive the child credit, a measure intended to deny the credit to people who are in the U.S. illegally.
Those who itemize lose some deductions.
The legislation also repeals an important part of President Barack Obama's health care law - the requirement that all Americans carry health insurance or face a penalty - as the GOP looks to unravel a law it failed to repeal and replace this past summer.
The package represents the first major legislative achievement for the Republicans after nearly a full year in control of Congress and the White House. It is expected to add to the nation's $20 trillion debt. The tax cuts are projected to add $1.46 trillion over a decade. GOP lawmakers say they'd expect a future Congress to continue the tax cuts so they won't expire. If achieved, that would drive up deficits even further.
Democrats, who were excluded from the closed-door drafting sessions, have kept up a litany of criticism that the legislation favors big corporations and the wealthy, snubbing the middle class. Though several Democratic lawmakers took part in the House-Senate conference that blended the two bills, none signed the final bill.
The bill would bring average initial tax cuts for Americans across all income lines, but by 2027, it would boost average levies for everyone earning up to $75,000, which includes most taxpayers, Congress' nonpartisan tax analysts estimated Monday.
The Joint Committee on Taxation calculated that in 2019, people earning $20,000 to $50,000 would see tax cuts averaging 10 percent or more. Those making $200,000 to $1 million would see reductions averaging slightly less.
But by 2023, people making under $30,000 would see tax increases, while those earning more would see their tax cuts get smaller.
And a separate new study by the Tax Policy Center, a private nonpartisan group, found that individual taxes would be reduced on average next year by $1,600. But that ranged on average from $60 for people earning below $25,000 to $7,640 for those making above $149,000. Those in the top 1 percent, earning over $733,000, would see average tax cuts of $51,140.
Nevada Rep. Ruben J. Kihuen issued the statement below following a vote in the House of Representatives on the Republican tax bill:
“It is outrageous that Republicans chose to gift a giant holiday tax break to big corporations and the wealthiest Americans at the expense of middle-class families. Not only does the Republican tax plan raise taxes on 86 million hardworking Americans, it explodes the deficit and paves the way for future cuts to essential programs like Social Security and Medicare. As if that weren't enough, this legislation undermines the Affordable Care Act and will lead to nearly 13 million Americans becoming uninsured.
“Our country desperately needs tax reform that benefits middle and lower income Americans, not reform that shifts the tax burden away from corporations and the rich and onto working families. While Republicans may be proud of themselves for finally passing a piece of legislation, the American people see through the ruse. Hardworking Americans know that Republicans are turning their backs on them to pass a tax plan that our families and our country simply cannot afford.”
Nevada Congresswoman Jacky Rosen released this statement:
“Congressional Republicans have voted to give billionaires and giant corporations a massive tax cut at the expense of hardworking Nevada families,” said Rosen. “This disaster of a bill includes a reckless provision repealing the Affordable Care Act’s coverage requirement, which will spike premiums and cause thousands of Nevadans in my district to no longer have health insurance. This tax plan will also explode our deficit by more than $1 trillion, mortgaging our children’s future and triggering deep cuts to services to Medicare. As Republicans ram this bill through Congress, it’s becoming crystal clear that this plan is designed to provide tax relief to wealthy donors and corporate special interests while everyday people get crumbs or eventually face a tax hike. My constituents deserved real bipartisan tax reform and a simpler, fairer tax code aimed at supporting the middle class, and this Republican-controlled Congress failed to deliver.”
Nevada Rep. Dina Titus released the following statement:
“With this ‘Job Cuts and Tax Scam’ bill, the GOP, to paraphrase Clint Eastwood, is pissing on our boots and calling it rain. Republicans have crafted a bill that will cost $2.2 trillion, increase the deficit by at least $1 trillion, and target the social safety net that serves at-risk communities like District 1. Thirteen million Americans will lose health care coverage, $25 billion in Medicare cuts begin next month, Medicaid slashes are in the crosshairs, and student loan fees will double. State and local programs will likely be on the chopping block because of the reduction in revenues.
“Eighty-six million Americans will ultimately see a tax increase while 83 percent of the benefits go to the top one percent of earners. The new corporate rates are set in stone while the so-called benefits for working families -- new income tax rates, standard deduction hike, doubling the child tax credit, and others – all sunset in a few short years.
“So where is the long-term relief for the hospitality workers, firefighters, cab drivers, teachers, and thousands of others in Las Vegas who will soon be paying more in taxes? It is going to President Trump, who said he would not benefit, his rich cronies, GOP donors, and other Republicans in Congress.
“With the Estate Tax break doubling, money will disappear from the general fund so Ivanka, Don. Jr., and Eric can get more. The Corker Kickback will enrich the eponymous Senator’s commercial real estate holdings along with the President’s and at least a dozen other members of Congress. Sen. Johnson, along with President Trump, will also see a bigger tax break for their non-real-estate pass-through entities.
“Many are asking about all the money that will supposedly fly back into the nation because of the changes in the corporate tax code. Don’t believe the hype, and don’t hold your breath. The bill encourages companies to keep money overseas by exempting ‘routine’ revenues, incentivizing companies with more factories and equipment overseas to keep their businesses out of the U.S. In addition, the bill’s ‘minimum levy’ emboldens companies that currently have money stashed in other nations to shift money to other tax havens, not back to the US.
“That’s a win-win-win for wealthy Republicans, but a gut punch to the people in my district. This bill is the product of a process that has had no hearings, no testimony, and no public input from the nation. It is a Reverse Robin Hood, a Trojan horse, or, put simply, a slap in the face of the American people.”
Democratic Governors Association released this statement:
“Nevadans deserve a governor who will put Nevada first, but Adam Laxalt refuses to take a stand on this critical bill that will raise taxes on middle-class Nevadans and blow up the national debt by $2 trillion,” said DGA Communications Director Jared Leopold. “It’s time for Adam Laxalt to say where he stands on the Congressional GOP tax bill. By refusing to speak out against this tax plan, Laxalt has made clear where his priorities really lie.”
(Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
