Senate passes “Tax Cuts and Jobs Act”
by Darren Mikus
The Senate passed a sweeping tax reform bill 51–49 in the early morning of Saturday, Dec. 2. The initial bill, which was passed by the House last month, went through several revisions before being voted upon on mostly partisan lines, according to The New York Times.
“In the end it all came together and we’re pretty excited about what we’ve been able to accomplish for the American people,” said Senate Majority Leader Mitch McConnell (R-Kentucky).
The bill, called the “Tax Cuts and Jobs Act,” included at least $1.4 trillion in tax cuts and a reduction in the corporate tax rate from 35 percent to 20 percent. Individual tax rates will temporarily be lowered and international business tax rules will be rewritten. Other provisions, including the opening of the Arctic National Wildlife Refuge to oil drilling and the repeal of the “individual mandate” in the Affordable Care Act were also included, according to The Wall Street Journal.
Several Republican Senators expressed concern over the bill, including Sen. Susan Collins (R-Maine) and Sen. Bob Corker (R-Tennessee).
Collins’ principle concern was property taxes. After meeting with other Republicans Friday morning, she said that party leaders were “working through a few more of my issues,” and by the end of the meeting she added that they were “making great progress,” according to CNN.
“This bill will provide much-needed tax relief and simplification for lower and middle income families, while spurring the creation of good jobs and greater economic growth,” she added after a $10,000 property tax deduction was added to the bill.
Corker addressed his concern that the tax bill would raise the deficit. This was in reaction to the congressional Joint Committee on Taxation which estimated that the tax cuts would increase the deficit by $1 trillion over the next 10 years, according to The New York Times.
“This is yet another tough vote. I am disappointed. I wanted to get to yes. But at the end of the day, I am not able to cast aside my fiscal concerns and vote for legislation that I believe, based on information I currently have, could deepen the debt burden on future generations,” Corker said in a statement.
Corker was the only Senate Republican to vote against the bill, according to The Wall Street Journal. Every Democratic senator voted against the bill, and some voiced their concerns.
“A flurry of last-minute changes will stuff even more money into the pockets of the wealthy and the biggest corporations while raising taxes on millions in the middle class,” Sen. Chuck Schumer (D-New York), the Senate minority leader said, according to The Wall Street Journal.
President Donald Trump, who argued that the current tax code made the U.S. uncompetitive internationally, celebrated the bill’s passage.
“Biggest Tax Bill and Tax Cuts in history just passed in the Senate. Now these great Republicans will be going for final passage. Thank you to House and Senate Republicans for your hard work and commitment!” he tweeted Saturday morning.
The House of Representatives passed its own tax reform bill last month which differs from the Senate’s bill. The two chambers of Congress will conference with each other to reconcile the bills before the tax plan can be signed into law, according to CNN.
Editor’s Note: Information from CNN, The New York Times and The Wall Street Journal was used in this report.
