The Tax Cuts and Jobs Act, including major tax cuts promised by US President Donald Trump, is on track for final passage next week, after two previous holdouts in the US Republican Party on Friday said they would vote yes on the legislation.
Republicans in both houses of the US Congress each adopted their own versions of the controversial tax code overhaul, the final compromise text of which was released late on Friday.
“By lowering tax rates, simplifying the rigged and burdensome tax code, and repealing the failed tax on lower and middle-income households known as the Obamacare individual mandate, this legislation will grow our economy, raise wages and promote economic competitiveness,” White House spokeswoman Sarah Sanders said.
Trump “looks forward to fulfilling the promise he made to the American people to give them a tax cut by the end of the year,” she added in a statement.
RESERVATIONS
US Senator Marco Rubio imperiled the legislation this week when he said he would not vote in favor of the sweeping bill unless some changes were made.
Rubio demanded a doubling of the child tax credit to US$2,000.
His spokeswoman confirmed that Rubio had moved to the “yes” camp after he achieved an increase in the refundable portion of the credit, which would help lower-income families.
Bob Corker, a fiscal conservative who was the only US Senate Republican to vote against the chamber’s initial tax proposal, also said he would vote for the bill, despite reservations over the likelihood that the reforms would substantially increase the national debt.
“I know every bill we consider is imperfect and the question becomes: Is our country better off with or without this piece of legislation?” Corker said. “I think we are better off with it. I realize this is a bet on our country’s enterprising spirit, and that is a bet I am willing to make.”
NOTCH UP
Under the legislation, federal corporate tax would fall from 35 percent to 21 percent — a notch up from the 20 percent in previous versions — and the maximum income tax rate would drop from 39.6 percent to 37 percent.
Republicans hold a 52 to 48 majority in the Senate, and could have only afforded two defectors, with US Vice President Mike Pence casting a deciding vote in case of a deadlock. No Democrats support the measure.
Each Republican member therefore has considerable power, especially with Senator John McCain hospitalized as he fights an aggressive form of brain cancer.
Trump was optimistic about his party’s chances of passing tax reform. He has promised Americans that the sweeping reform would pass before Christmas, so that it would take effect from the beginning of next year.
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