U.S. Republicans debut tax bill, Trump seeks first win
WASHINGTON, ( Reuters) - Republicans in the U.S. House of Representatives unveiled a tax bill yesterday that would cost $1.51 trillion and deliver deep tax cuts as promised by President Donald Trump, setting off a race in Congress to give him his first major legislative win.
In what would be the largest overhaul of the U.S. tax system since the 1980s, Republicans called for slashing the corporate tax rate to 20 percent from 35 percent, cutting tax rates on companies’ foreign profits and on individuals and families.
Congressional passage of the legislation, which would affect nearly every U.S. company and family, was far from certain. Some business groups quickly came out against it and Democrats swiftly condemned it as a giveaway to the rich.
Contentious provisions will test Republicans, who control the White House and both chambers of Congress, but have been unable to deliver major legislative achievements for Trump since the businessman-turned-politician became president in January.
A number of provisions in the bill would hit taxpayers in Democraticleaning states hardest, such as rolling back deductions for state and local taxes and cutting in half the popular mortgage interest deduction. Lobby groups for the real estate industry and small businesses condemned the legislation.
Titled the Tax Cuts and Jobs Act, it would benefit wealthy Americans by lowering their income taxes, cutting corporate and other business taxes, phasing out over six years the estate tax on inherited assets and repealing the alternative minimum tax.
“This is a very important and special moment for our country, for all Americans. Are we going to let the defenders of the status quo win and see our country continue down this downward spiral?” asked Republican House Speaker Paul Ryan, despite data showing eight straight years of economic growth.
Meeting with Ryan and other key House Republicans, Trump told the lawmakers he was counting on them to maintain the momentum for tax cuts. He repeated his request that Congress send him the legislation to sign into law by the U. S. Thanksgiving holiday on Nov. 23.
That is an ambitious timetable for such a long, multi-faceted proposal that will face a ferocious lobbying battle among business sectors affected by the bill and determined opposition from most Democrats in Congress.