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

Kristeen FelipeDec 20, 20172 9015 votes +3 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 Terrible Individual Mandate (ObamaCare)Repealed,” Trump tweeted.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!

Total: 6 comments
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  1. Roger Wabbit
    2017-12-20, 4:30PM
    How will society function when human physical labor or ability to do menial or repetitive tasks like packing, driving, or machining isn't enough to get a job?

    Thanks to automation and advancements in machine learning, we're rapidly approaching the end of the trucking industry (~5 years, millions of employees), fast food/retail (5-10 years, tens of millions of employees), and other sectors are vulnerable as well. How do we prepare? How do we make sure that we don't leave anyone behind in a new world where jobs are scarce but capital is plentiful (if narrowly distributed)?

    It's like when cars replaced horses, except now we're the horse, and we depend on our labor to eat and function in society.
  2. Jason Hensel
    Jason HenselJournalist
    2017-12-20, 1:05PM
    Where to begin. This bill is far from perfect, but Obamacare is probably not a great comparison. The fundamental underpinnings of Obamacare relied on coercion. Forcing (some) people to buy plans that are dictated by the government and wouldn't otherwise be purchased by that individual was required under Obamacare. It also had the collateral damage of disrupting markets, making it unprofitable to operate in certain markets and ultimately limiting competition - which is never a good thing for the consumer in terms of costs (see rising premiums) or the product quality.

    Compare this to the aforementioned imperfect tax bill. It doesn't rely on coercion. It's actually toward the other end of the spectrum by giving people more freedom by keeping more of their earned money (again, not perfect) and giving corporations (which are not really tax payers, only tax collectors) more flexibility to do what they want with their earnings.

  3. lexuss
    2017-12-20, 12:41PM
    Republicans have their own Obamacare now!

    When you call this tax-fraud the Republicans' Obama-care, if you mean that it is a similar political liability then you are correct. Of course the big difference is that the ACA saved thousands of lives. People who would have died without medical coverage. And now the ACA has an almost 60% approval rating.

    This tax-fraud is WAY more unpopular than the ACA was at any point in its history. The repeal of the individual mandate is going to cost 13 million people health coverage and for all intents and purposes cause millions more with pre-existing conditions to not be able to afford coverage.

  4. Randall Mark
    Randall MarkJournalist
    2017-12-20, 12:24PM
    25 of the largest corporations in America do not pay any federal taxes and the ones that do pay on average a 24% tax after deductions. The lies from republicans never end...
  5. Kristeen Felipe
    2017-12-20, 12:17PM
    Democrat strategy: Give money away. Conservative strategy: give people back more of the money they have already earned. Liberals hate this because of that whole "earned" thing, it means they have to get jobs. The CNN panel is weeping, and a few have soiled themselves, and one was crying for Hillary and mommy at the same time. I soiled myself too... from laughing. laughing
    1. iNexussbeene
      2017-12-20, 4:34PM
      This new tax bill being passed is just another attempt for socialism a one class society. Never was taxation created in order to punish the American poor and reward the wealthy. It was not to be used as corporate bailouts nor to Enrich individuals a.k.a stockholders and CEO. I want to know who is being paid to start building the new America work camps. All homeless disabled and poor people should be moved to work camps and clean up America again.

      I believe the Trump's children are going to be in charge of several of these camps but "lets make America great again" by getting our America poor who cant afford hugh dollariving into these camps so we can generate more income for the wealthy. Hell if you hurry you can build work camps in a matter of two weeks just in time to reap the tax rewards. Lets go America start your work camp now contact your local congressman to establish your camp today.
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