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Republicans release final tax bill ahead of key vote

Republican lawmakers have unveiled their final tax bill, a step that will place them on track to vote on their…

Republicans release final tax bill ahead of key vote

Republicans (Photo: IANS)

Republican lawmakers have unveiled their final tax bill, a step that will place them on track to vote on their plan next week and potentially have President Donald Trump sign it into law by the end of the year, the media reported.

Like the bills that came before it, the legislation produced by the House-Senate conference committee would result in massive changes to the tax system, cutting rates for many individuals and businesses while placing new limitations on tax breaks, reports The Hill magazine.

“I’m very excited about this moment. It’s been 31 years in the making and took a lot of hard work by a lot of people to make this day happen. I’m proud of the Tax Cuts and Jobs Act,” Representative Kevin Brady (R-Texas), the chairman of the House Ways and Means Committee, said after the bill was released on Friday evening.

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The House will vote on the bill first, on December 19, and then the Senate will vote after which it will be sent to Trump.

Under the final bill, the top individual rate would be lowered from 39.6 per cent to 37 per cent, which is lower than the top rate in the original bills passed by the House and Senate.

The corporate tax rate would be cut from 35 per cent to 21 per cent, up from 20 per cent in the original bills.

The measure has seven individual tax brackets.

It also increases the child tax credit from $1,000 to $2,000, as the Senate bill did, and increases the maximum amount that is refundable to $1,400, up from $1,100 in the original Senate measure. The latter change was made to secure Republican Senator Marco Rubio’s vote.

The legislation preserves the deductions for mortgage interest and charitable giving, though it lowers the cap on the mortgage deduction from $1 million to $750,000, The Hill magazine reported.

The final bill provides tax relief to pass-through businesses – entities such as small businesses whose income is taxed through the individual code – through a 20-per cent deduction.

Republicans are advancing the measure through a process called reconciliation that prevents a filibuster from Democrats in the Senate.

Republicans have long wanted to rewrite the tax code, arguing that doing so would boost economic growth and lead to more job creation.

The Joint Committee on Taxation estimates the bill will lower federal revenue by $1.456 trillion over 10 years – a key finding, as the bill cannot add more than $1.5 trillion in debt and qualify for special Senate rules.

Democrats are expected to remain united in opposition against the bill. They say the measure provides most of its benefits to wealthy individuals and corporations and would end up raising taxes on some middle-class families.

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