U.S. tax-break bill will pass

Republicans say huge corporate tax cuts will invigorate investment

WASHINGTON — After weeks of quarrels, qualms and then eleventh-hour horse-trading, Republicans revealed their huge national tax rewrite late Friday — along with announcements of support that all but guarantee approval next week. The legislation would double the basic per-child tax credit from $1,000 to $2,000 and would slash tax rates for big business and lower levies on the richest Americans in a massive $1.5trillion bill.

The Republicans plan to push the bill through Congress before its year-end break. Benefits for most other taxpayers would be smaller.

“This is happening. Tax reform under Republican control of Washington is happening,” House Speaker Paul Ryan said, “Most critics out there didn’t think it could happen . ... And now we’re on the doorstep of something truly historic.”

According to the 1,097-page bill released late Friday, today’s 35 per cent rate on corporations would fall to 21 per cent, the crown jewel of the measure for many Republicans.

Trump and his Republican Party leaders had set 20 per cent as their goal, but added a point to free money for other tax cuts that won over wavering lawmakers in final talks.

The legislation represents the first major legislative achievement after nearly a full year in control of Congress and the White House.

It’s the widest-ranging reshaping of the tax code in three decades and is expected to add to the nation’s $20 trillion debt. The debt is expected to soar by at least $1 trillion more than it would without the tax measure, according to projections.

Support is now expected from all Senate Republicans, ensuring narrow approval. Democrats are expected to oppose the legislation unanimously.

“Under this bill, the working class, middle class and upper middle class get skewered while the rich and wealthy corporations make out like bandits,” said Senate Minority Leader Chuck Schumer of New York. “It is just the opposite of what America needs, and Republicans will rue the day they pass this.”

The bill would drop today’s 39.6 per cent top rate on individuals to 37 per cent. The standard deduction — used by around twothirds of households — would be nearly doubled.

Those who itemize their taxes face mixed results. The $1,000 per child tax deduction would grow to $2,000, with up to $1,400 available in IRS refunds for families who owe little or no taxes.