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Final reform: U.S. Senate passed the biggest in history Tax Cut and Reform Bill

Sarah GillmorDec 20, 20174 5901 vote +1 rating

Senate Republicans passed their sweeping tax bill just after midnight on Wednesday, putting the GOP and President Donald Trump a hair’s breadth away from a signature legislative victory that has been missing from their first year in control of the federal government, as the “Business Insider” reports.

Biggest in history Tax Cut and Reform BillThe bill passed by a 51-48 vote, with no senator crossing party lines. Sen. John McCain was not present for the vote while he recovers in Arizona from complications of treatment for brain cancer.

The Senate passed Republicans’ tax bill, the Tax Cuts and Jobs Act, just after midnight on Wednesday.

The vote puts the bill on the edge of success, with only a technical vote in the House needed before it can be sent to President Donald Trump’s desk.

The bill is set to make sweeping changes to the tax code for both businesses and households.

The passing of the Tax Cuts and Jobs Act in the Senate leaves a technical vote in House as the last remaining obstacle before the bill can be sent to Trump’s desk. “After eight straight years of slow growth, America is ready to take off,” Majority Leader Mitch McConnell said in a press conference after the vote. President Donald Trump also cheered the bill’s passage, and he laid out the timeline for a celebration on Wednesday.

Social networks reader’s comment:

The Senate drops the mic and goes home! Liberals, the American People have chosen jobs, wealth and dignity! Not your welfare, food stamps and shame. It’s so good to watch the democrat party writhing as it dies a slow and painful death. Winning Winning Winning... The Obama horror years are OVER!

What is the Dem platform for 2018? The economy is doing great, ISIS is pretty much defeated, your taxes are lower, and the southern border is secure. But vote for me anyway, I voted no to Trumps agenda! Good luck with that.

“The United States Senate just passed the biggest in history Tax Cut and Reform Bill. Terrible Individual Mandate (ObamaCare)Repealed,” Trump tweeted. “Goes to the House tomorrow morning for final vote. If approved, there will be a News Conference at The White House at approximately 1:00 P.M.”

Senate rules forced three minor provisions to be stripped from the bill after it passed the House on Tuesday. The House will now need to vote on the revised version of the bill.

Since the bill passed the House by a comfortable margin, the vote on Wednesday is considered a formality. The bill is set to make sweeping changes to the tax code for businesses and, on average, American taxpayers.

Social networks reader’s comment:

Sorry Democrats, this will NOT be an Obamacare replay. Obamacare was passed on a partisan vote but it was terrible. Tax reform was also passed on a partisan vote but it will stimulate the economy and will become more popular with each passing day. Democrats seem to be better at messaging, but Republicans are better at substance. In the end, substance matters most.

Here’s a rundown of some of the big changes that are reportedly in the agreement:

  • A less generous corporate rate cut. Republicans may cut the corporate rate to 21% from the current 35%, starting in 2018. The House and Senate versions had proposed a 20% rate. Despite making a 20% corporate rate his “red line” for a tax bill, Trump said at a meeting with the GOP leaders of the tax committees that he would sign a bill with a 21% rate.
  • A lower top individual tax rate. The top individual bracket would drop to 37% from the current 39.6%. The Senate version had proposed a 38.5% rate.
  • Keep the estate tax, but raise the threshold to qualify. Instead of phasing out the estate tax over time, as the House version proposes, the compromise bill would increase the threshold for an estate to qualify, to about $11 million from $5.6 million. That aligns with the Senate version.
  • A 20% deduction for pass-through businesses. Pass-through businesses – in which the owner books profits as their income, like a limited liability corporation or S-corp – would get a 20% deduction on their income. This is more similar to the Senate version but less generous than its proposed 23% deduction.
  • Repeal the corporate alternative minimum tax. The corporate AMT in the Senate version was a sore spot for many companies because it would have negated the effects of many popular deductions and credits, such as the research and development credit.
  • Adjust the cap for the mortgage interest deduction. The cap would be lowered to $750.000 from the current $1 million. This is higher than the $500.000 cap proposed in the House version. The Senate version would have left the deduction unchanged.
  • Does not include the House’s “graduate student tax.” The House bill would have taxed tuition waivers for graduate students like normal income, which critics said could have crippled many universities’ graduate programs. Even some House Republicans came out against the provision. The Senate version did not include it, and the compromise bill will not either.
  • Compromise on the state and local tax deduction. The bill would allow people to deduct up to $10.000 in state and local property taxes or the same amount of income and sales taxes – a nod toward appeasing House members in states with high taxes.
  • Repeals Obamacare’s so-called individual mandate. This proposal – to eliminate the requirement that most Americans have health insurance or pay a fine – was in the Senate’s version of the bill. Given the GOP’s longtime desire to repeal and replace Obamacare, officially the Affordable Care Act, House Republicans are likely to support this.
  • Keeps a slew of popular tax breaks. According to The Wall Street Journal, the bill would preserve deductions for medical expenses and student loan interest, as well as tax-free private-activity bonds used by local governments to build things like hospitals.

On the business side, the biggest change is the lowering of the federal corporate tax rate to 21% from 35%. A series of new rules would make it easier to deduct new investments and cheaper to bring back assets held overseas and would carve out exemptions for individual industries like craft brewers.

Social networks reader’s comment:

I am a pizza guy that makes 25k annual. My wife works in an afterschool care center and makes 15k anual. Combined we are a 40k family or lower middle class. This tax plan will rid me of the tax for not having insurance part of the year. +$800.00. It reduces my taxes by a few percent which over time adds up. And finally we receive an extra $1000.00 for our Son. We don’t have many deductions aside from buying a truck so for average people like us this is a God sent. Much Appreciation to the Hot Mess Called the Republican Party in Congress! Y’all finally got something right!

On the individual side, the bill would keep the same number of tax brackets but lower the rates on different income levels. According to analyses, this would result in the bulk of Americans – roughly 80% – getting a tax cut next year, while a handful of people would see their taxes increase.

But unlike the corporate tax cuts, the individual tax cuts would expire after 2025. Republicans say a future Congress will extend these cuts, but given the level of disagreement in Washington, critics argue that is not guaranteed.

Overall, the bill is expected to provide a modest boost to the US economy but less than grandiose promises from Republican leaders.

Social networks reader’s comment:

When you receive more money in your paycheck that doesn’t need to be paid back... everyone is receiving a tax break! Remember that at election time, not one DEMOCRAT voted for this bill. Democrats are all for themselves and not for the American people.

The new economic growth is expected to fuel more tax revenue. But all independent analyses have estimated that the final version of the bill will add $448 billion to over $1 trillion to the federal deficit over 10 years, rejecting GOP claims that the legislation would pay for itself.

Members of each party quickly put their spin on the bill’s passage.

Republicans used the opportunity to tout what they say will be the positive effects for average people and the US economy.

Social networks reader’s comment:

What bothers me, as a Republican, is that the Dems. are ALWAYS saying that so-and-so is gonna be for the rich. They don’t understand that a good majority of rich folks own corporations. Less taxes on them means more money they can use to invest in more jobs and other good things. It’s only “controversial” because the MSM will never accurately report any Republican success. That’s okay, the American people will find out for themselves soon enough.

“For years, Republicans and Democrats alike have called for middle-class tax cuts and a more competitive tax code for American workers and businesses, and today Republicans are delivering on that promise,” GOP Sen. Rob Portman of Ohio said in a statement. “This bill will cut taxes for middle-class families, reform our business tax code to create more jobs and higher wages for Ohio workers, and update our international tax code to encourage jobs and investments in America.”

Social networks reader’s comment:

This President will reside over the greatest economic expansion this country has ever experienced. It’s not complicated... we elected a business professional instead of a lying politician that hasn’t a clue. Glorious!

On the opposing side, Democrats decried the bill as a handout to the rich and large corporations.

“This bill will exacerbate inequality, not ameliorate it,” Democratic Sen. Cory Booker said in a statement. “It’s irresponsible, reckless, unjust, and just plain cruel – and for these reasons and more, today is one of my most disappointing days as a US senator. I look forward to the day – and it will come – that we reverse this devastating piece of legislation and bring real tax reform that truly helps working families and small businesses across the country.”

Social networks reader’s comment:

God! We hate these republicans. Who do they think they are? The stock market is tanking, unemployment is at an all time high while job growth is stagnant. Has anyone noticed how many businesses are fleeing the US? Now this, the final blow, cutting taxes is the craziest thing yet. We should all be grateful the democrats have been able to keep them high for so long. Now these clowns are ruining everything. For the liberals who believe the outright lies of their party you may want to go to the tax calculator (non-partisan) and see how the bill will actually affect you – then you will see the truth!

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