House Passes Tax Reform Bill; Senate Next?
A sweeping overhaul of the tax code, viewed as a cornerstone of President Trump’s economic agenda, cleared the U.S. House of Representatives. H.R. 1, the “Tax Cuts and Jobs Act” passed a House vote, 227-205, and now moves on to a possible Senate vote by the end of the month.
The House tax bill would cut taxes by as much as $1.5 trillion over 10 years. The corporate tax rate would be cut to 20% from 35%, the number of tax brackets reduced to four from seven, the U.S. will shift to an international tax system more closely aligned with other countries, and many popular deductions, such as one for state and local taxes paid, would be eliminated or scaled back.
Significant obstacles still remain to the tax rewrite, since Republicans must align House legislation with a bill working through the Senate Finance committee that has wide gaps to be bridged.
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