Republicans Celebrate As New Tax Bill Passes the House
By Anais Bundy 11/19/17
The Republicans are celebrating a victory, after their new tax bill passed through the House. This is the largest overhaul of the US tax code since 1986. The bill passed the House in a 227-205 vote on Thursday, with not a single Democrat voting in support of it.
This new legislation will affect every citizen in the U.S who owns property or a business. Under the bill, the corporate tax rate will decrease from 35 percent to 20 percent. There are many businesses that hold cash overseas in order to avoid the former 35 percent tax. It’s hoped that lowering taxes lower taxes on companies will result in more competition, and dissuade businesses from moving outside of the U.S.
However, the plan faces plenty of opposition from the Democrats, who say it only benefits wealthy Americans. In addition, not all Republicans are in favor of the bill. A dozen Republicans from California, New York, and New Jersey voted no. They say that’s because the bill does not include deductions for state and local taxes.
The next step is for the Senate to pass its version of the bill and for an eventual compromise to be worked out by both chambers. One of the disagreements is over the Affordable Care Act. The House only voted on a tax bill, while the Senate bill includes a plan to remove the legal requirement in ACA that almost all Americans must buy health insurance or pay a penalty. The two chambers have very different versions of the bill and a showdown is in sight.