The bill, which included about $1.4 trillion in tax cuts, would lower the corporate rate to 20% from 35%, reshape international business tax rules and temporarily lower individual taxes. It also touched other Republican goals, including opening the Arctic National Wildlife Refuge to oil drilling and repealing the mandate that individuals purchase health insurance, which would punch a sizable hole in the 2010 Affordable Care Act. But some objectives, such as repealing the alternative minimum tax, fell by the wayside in last-minute wrangling.
“In the end it all came together and we’re pretty excited about what we’ve been able to accomplish for the American people,” Senate Majority Leader Mitch McConnell (R., Ky.) said in an interview Friday. “We’ve got a corporate rate at 20% that we think makes us competitive in the world again and provided substantial middle-income tax relief.”
The bill passed 51-49, with all but one Republican voting for it and all Democrats voting against. The sole Republican, Sen. Bob Corker of Tennessee, stated his opposition before the vote, citing worries it would expand budget deficits.
The bill’s ultimate passage would mark a legislative victory for President Donald Trump and his fellow Republicans. Mr. Trump has made the tax overhaul a centerpiece of his economic policy goals, focusing on a rewrite of business taxes, which he has argued make the U.S. uncompetitive internationally. The bill could also give lawmakers something to campaign on in the 2018 midterm elections.
Democrats blasted the bill, calling it an unacceptable giveaway to corporations and the wealthy. They also criticized last-minute Republican adjustments and waved handwritten amendments around the Senate floor to show how hastily the changes were being made.
This is actually a really good thing. Which is why I’m worried it won’t fully pass. The jab at ObamaCare is enough to get people a little excited. And it’s also a reason to be shocked that the GOP was able to get enough cohesion to pass it through the Senate. Except Corker. The slime.
One key thing that people tend to ignore or not understand is that taxes are more complex than the idea of cutting taxes for the rich and giving more money to the poor. This age old idea of Robin Hood steals from the rich and gives to the poor isn’t how reality works either. In reality, the rich will do everything in their power to avoid paying taxes, and it’s completely legal. They will call their accountant or their tax advisor and try finding a way to get out of paying as much as they can. The middle class doesn’t have this luxury. So when Bernie Sanders gets up on stage and talks about taxing the rich, he’s talking about doing something that can’t be done. All that would happen is that the middle class would continue to drown in taxes, as if they don’t already. So this slight relief could actually be a good thing for the average person given that the mandate to purchase health insurance is hurting a lot of families.
I wasn’t exactly a cheerleader for this bill, but if Trump can get this passed and move onto DACA or Welfare Reform I’ll be pleased. And I’ll be even more pleased if he can stop illegals or immigrants in general from being able to obtain welfare. Because it’s not for them. It’s for U.S. citizens.
But as usual, I tend to dream big.