In the early hours of Wednesday morning, Senate Republicans on Capitol Hill voted overwhelmingly to approve a sweeping tax reform package consisting of deep tax cuts for American individuals and corporations that is expected to add to the federal deficit over the next decade but also provide some short-term tax relief for most Americans while repealing the individual mandate of Obamacare which penalizes Americans for not carrying health insurance.
The Republican majority Senate voted unanimously for the Republican led tax reform package, The Tax Cuts and Jobs Act, in a 51-48 vote with all Senate Democrats voting against the new tax legislation that is estimated to cost $ 1.5 trillion in deficit spending over 10 years and lower the corporate tax rate from 35 to 21 percent.
Wealthiest Americans in the top tax bracket will see their tax rate drop from 39.6 to 37 percent while the standard deduction is roughly doubled for American taxpayers who don’t itemize their taxes.
Individual Americans will have their tax cuts sunset by 2026, although the deep corporate tax cuts, the most far reaching tax cuts in U.S. history, will remain intact.
According to poll results, a majority of Americans hold an unfavorable view of the new Republican tax reform legislation that mostly benefits corporations and wealthiest Americans.
The new tax reform bill will move to the Republican majority House of Representatives tomorrow for a final procedural vote before it arrives on the desk of President Trump who will sign the bill before it takes effect in 2018.
Earlier on Tuesday, House Republicans voted overwhelmingly in favor of the Republican tax reform bill by a margin of 227 to 203 with 2 no votes.
Late on Tuesday, President Trump tweeted a message of congratulations to the U.S. Senate for approving the new Republican led tax reform package, the biggest tax cuts in U.S. history.
The United States Senate just passed the biggest in history Tax Cut and Reform Bill. Terrible Individual Mandate (ObamaCare)Repealed. 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.
— Donald J. Trump (@realDonaldTrump) December 20, 2017
Senate Finance Committee Chair Orrin Hatch (R-Utah), one of the main architects of the new tax reform bill, hailed passage of the bill early Wednesday morning and released the following statement:
“With this legislation, we maintained our commitment to creating a tax code that is based in simplicity and fairness. We’re lowering rates across the board for the American people. We’re ensuring businesses, both small and large, can better compete and bring more jobs and investment back home. And, we’re remaking the tax code in way that will allow more individuals and families invest in their future. We should all be proud of this historic moment, which puts us a stone’s throw away from helping hardworking Americans get bigger paychecks, better jobs and fairer taxes.”
Minority Leader Chuck Schumer (D-New York) criticized the Republican tax reform bill on Tuesday night and tweeted,
“Yet again, Republicans showed their only priority is to give the richest few a bigger piece of the pie.”
Yet again, Republicans showed their only priority is to give the richest few a bigger piece of the pie.
— Chuck Schumer (@SenSchumer) December 20, 2017
Vermont Senator Bernie Sanders released a statement about the final GOP tax bill late on Tuesday in which he described the tax reform bill as “highway robbery in broad daylight” and a “looting of federal Treasury.”
“Today is a victory for the Koch brothers and other Republican campaign contributors who will see huge tax breaks for themselves while driving up the federal deficit by $ 1.5 trillion” Sen. Sanders said on Tuesday.
Sen. Elizabeth Warren (D-Massachusetts) used words such as “heist” and “government for sale” in a tweet on Tuesday when describing the new GOP tax reform bill.
“The bill that Republicans jammed through the Senate tonight isn’t tax reform. It’s a heist. Let’s call this out for what is: Government for sale. #GOPTAXScam”
The bill that the Republicans jammed through the Senate tonight isn’t tax reform. It’s a heist. Let's call this out for what it is: Government for sale. #GOPTaxScam
— Elizabeth Warren (@SenWarren) December 20, 2017
Written and Edited By: