Rewrite of tax laws a much-needed win

UNITED STATES: Jubilant Republicans pushed yesterday to the verge of the most sweeping rewrite of the US’S tax laws in more than three decades, a deeply unpopular bill they insist Americans will learn to love when they see their paycheques in the new year.

President Donald Trump cheered the lawmakers on, eager to claim his first major legislative victory.

Perhaps emblematic of the stumbles along the way, there was one last hiccup. Speaker Paul Ryan, who has worked for years toward the goal of revamping the tax code, gleefully pounded the gavel on the final House vote that approved the legislation, but then it turned out it wasn’t final after all.

Democrats noted that three provisions violated Senate rules and had to be removed, so the massive bill was hauled back across the Capitol for the House to vote on it again before it could be sent to Trump for his signature.

GOP House members roared and applauded as their chamber passed the US$1.5 trillion package largely along party lines, 227-203.

‘‘This was a promise made. This is a promise kept,’’ Ryan declared as he and other GOP leaders convened a victory news conference moments later.

The package will touch every American taxpayer and every corner of the US economy, providing steep tax cuts for businesses and the wealthy, and more modest help for middle- and low-income families.

Despite Republican talk of spending discipline, the bill will push America’s huge national debt ever higher.

The president is aching for a win after 11 months of legislative failures and nonstarters.

He tweeted his congratulations to GOP leaders and ‘‘all great House Republicans who voted in favor of cutting your taxes!’’.

Congressional Republicans, who faltered badly in trying to dismantle Barack Obama’s Affordable Care Act, see passage of the tax bill as crucial to proving to Americans that they can govern – and imperative for holding on to House and Senate majorities in next year’s midterm elections.

They have repeatedly argued that the bill will spur economic growth as corporations, flush with cash, increase wages and hire more workers. But they acknowledge that they have work to do in convincing everyday Americans. Many voters in surveys see the legislation as a boost to the wealthy, such as Trump and his family, and a minor gain at best for the middle class.

Ryan was positive, even insistent. ‘‘Results are what’s going to make this popular,’’ he said.

Democrats called the bill a giveaway to corporations and the wealthy, with no likelihood that business owners will use their gains to hire more workers or raise wages. They mocked the Republicans’ contention that the bill will make taxes so simple that millions of Americans will be able to file their returns ‘‘on a postcard’’ – an idea repeated often by the president.

‘‘What happened to the postcard? We’re going to have to carry around a billboard for tax simplification,’’ declared Richard Neal of Massachusetts, the top Democrat on the Ways and Means Committee.

The tax cuts would take effect in January, and workers would start to see changes in the amount of taxes withheld from their paycheques in February.

The bill would initially provide tax cuts for Americans of all incomes. But if the cuts for individuals expire, most Americans – those making less than US$75,000 – would see tax increases in 2027, according to congressional estimates. –AP