The legislation passed with support from all but thirteen Republicans and no Democrats, and now faces significant challenges in the Senate
House Republican passed major tax cut legislation on Thursday after a closed-door speech on Capitol Hill from Donald Trump.
The bill, which would slash corporate taxes from 35% to 20% and also reduce individual rates, passed by a margin of 227 to 205, with assistance from all but 13 Republicans and no Democrats.
GOP protesters have been particularly concerned about provisions that almost completely remove the deduction for country and local taxes, a major issue for Republicans from states such as New York and New Jersey.
They included senior Republicans like Rodney Frelinghuysen, who chairs the appropriations committee but represents a suburban swing district in New Jersey, and Darrell Issa of California, the former chair of the government oversight and reform committee who are won re-election by 1,600 votes in 2016.
Speaker Paul Ryan, who has long prioritized taxation reform, hailed the passage of the bill.” We throw America in the driver’s seat in the world economy once again .” The Wisconsin Republican had prioritized the bill, which he claimed would save an average middle class household $1,182 a year in taxes.
Donald Trump hailed the bill’s passageway on Twitter . He wrote:” Congratulations to the House of Representatives for passing the #TaxCutsandJobsAct– a big step toward fulfilling our promise to deliver historic TAX CUTS for the American people by the end of the year !”
With the legislation’s passageway, debate now moves on to the Senate, which is considering a significantly different version of the bill, which would purpose private individuals mandate to buy healthcare.
A non-partisan analysis has said this would lead to taxation increases on Americans inducing between $10,000 and $75,000 over the next decade. Nonetheless, Republican have strenuously disagreed with this analysis.
” Anyone who says we’re hiking taxes on low-income families is misstating the facts ,” said Utah senator Orrin Hatch, lead author of the bill.” Obviously we have no intention of creating taxes on those households. Every Republican on this commission has been committed to providing taxation cuts for every income cohort .”
The legislation faces significant challenges in the Senate.
One conservative, Ron Johnson of Wisconsin, announced on Wednesday that he could not support the legislation as is because of how it treats certain enterprises called ” pass-through entities “.
Other Republican have been skeptical for other reasons. Susan Collins of Maine- whose opponent helped drop Republican repeal of Obamacare- opposes the provision to completely eradicate the estate tax and has suggested including the removal of the Obamacare individual mandate is a mistake, while Bob Corker of Tennessee, a frequent critic of Trump’s, has been skeptical of the plan’s result on the deficit.
Estimates am telling the bill would increase fiscal deficits by $1.5 tn over the next decade.
Holding a slim 52 -4 8 majority, Republican currently can only afford to lose two senators for the Senate tax cut proposal to be passed.