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Republican Tax Bill Likely To Become Law

The White House expects the tax bill to pass.

In the early morning hours of December 20, the Senate passed the Republican tax bill.  Votes were straight party line vote, 51-48.  The bill will be sent back to the House for a final vote.  If passed, the tax bill will be sent to President Donald Trump to be signed into legislation.

The newly passed tax bill eliminates the health care mandate for Obamacare and drastically lowers the corporate tax rate by 14%.  This is the biggest tax overhaul since

“I think minds are going to change and I think people are going to change their view on this,” Speaker Paul Ryan (R-WI) told Good Morning America about the vastly unpopular bill.

The Tax Cuts and Jobs Act is overwhelmingly unpopular.  FiveThirtyEight is tracking favorable numbers at 36% or lower in several major polls.  The abysmal popularity is likely because of the benefits to top earners in tax brackets and not middle or lower income families.

“Helping the middle class has never been their goal. From day one the donors, lobbyists, wealthy, and well-connected came first,” Minority House Leader Nancy Pelosi (D-CA) said on the House floor.  “This GOP tax scam is simply theft.”

The independent Congressional Budget Office has scored the tax bill as adding $1.4 trillion to the deficit over a 10-year period.  Starting in 2019 and continuing through 2022, the deficit hits its highest numbers.  Republicans think economic growth will be the answer.

“I not only don’t think it will increase the deficit, I think it will be beyond revenue neutral,” Senate Majority Leader Mitch McConnell said. “In other words, I think it will produce more than enough to fill that gap.”

The Tax Cuts and Jobs Act highlights tax cuts, but job creation is not definite.  The tax bill doesn’t require businesses to use cuts towards job growth or higher wages, as promised by Trump.

Yale University hosted a CEO Summit and polled 110 business leaders about the bill.  The bill barely gained a majority support.  Leader of the CEO Summit, Jeffrey Sonnenfield, noted many companies had no plans of investing tax savings.

Despite its unpopularity, stocks hit an all-time high with the impending passing of the tax bill.

The Tax Cuts and Jobs Act is the first piece of major legislation passed by the Trump administration in his first year as President.  Trump gave the House and Senate deadlines to pass legislation before the holidays.  It’s likely Congress will meet the deadline regardless of public views.

How will the new bill likely hit your pocketbook?  Use this calculator see the tax bill’s affect.

The House is scheduled to vote on the final bill after 12:00 p.m. and a White House ceremony celebrating the passage at 3:00 p.m.

 

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