On Wednesday December 20, the Senate voted 51 to 48 to pass the first overhaul of the tax code in over a few decades. This $1.5 trillion tax bill is the most significant legislative victory passed by the GOP in 2017, soon to be placed on President Trump’s desk to be passed. The economy will be shifted by this overhaul, as it makes substantial cuts to corporate taxes and initially lowers individual taxes. Senate Democrats and Republicans argued the approval of the bill due to the Democratic belief that this bill favors corporations over Americans.
“The bill is simply theft — monumental, brazen theft from the American middle class and from every person who aspires to reach it,” House representative for the Democratic party, Nancy Pelosi, commented.
The House voted to pass the bill on Tuesday, 227 to 203, with twelve Republicans voting against the bill from states that would be limited by the deduction on state and local taxes.
The proposed tax overhaul features a corporate tax cut from 35 to 21 percent, hoping to increase jobs and wages. Individual tax cuts decrease from 39.6 to 37 percent, expiring after 2025 to assist budget laws. The size of inheritance will double and allow business to remove 20 percent of their income. A study completed by the Tax Policy Center found that taxes would decrease by about $1600, increasing incomes 2.2 percent with benefits going towards wealthy households. It eliminates a substantial requirement of the Affordable Care Act, increasing premiums for health care and allowing oil and gas drilling in a refuge area of Alaska.
President Trump’s signature on the bill would end his first year in office with a significant piece of legislation following through. He took to Twitter early Wednesday morning, stating, “The United States Senate just passed the biggest in history Tax Cut and Reform Bill. Terrible Individual Mandate (ObamaCare) Repealed.” Critics argue that Republicans, specifically Trump, will directly benefit from the passing of this bill. With the divide of the GOP, this bill passing is monumental to uniting the GOP after the splitting election last year.
