• Republicans confident tax bill to become law this week

    18 Dec 2017 | Economic News

Top U.S. Republicans said on Sunday they expected Congress to pass a tax code overhaul this week, with a Senate vote as early as Tuesday and President Donald Trump aiming to sign the bill by week’s end.

John Cornyn, the No. 2 U.S. Senate Republican, said in an interview on ABC’s “This Week” that he was “confident” the Senate would pass the legislation, “probably on Tuesday.”

If passed, the bill would be the biggest U.S. tax rewrite since 1986 and provide Republican lawmakers and Trump with their first major legislative victory since they took control of the White House in January in addition to Congress.

Republicans have a slim 52-48 Senate majority and cannot lose more than two votes and still pass tax legislation. Democrats are unified against the measure, calling it a giveaway to corporations and the rich that would drive up the federal deficit.

Last week, on-the-fence Republican Senators Marco Rubio and Bob Corker said they would support the tax overhaul. Senators Susan Collins and Mike Lee put out positive statements but did not explicitly say they would vote for it. Collins’ office said on Sunday that “she’s still reviewing the bill.”

Republican Senator Jeff Flake cast a vote for an earlier Senate version despite deficit concerns, but he is undecided on the final legislation, his office said on Sunday.

‘HISTORIC EVENT’

The tax bill is expected to add at least $1 trillion to the $20 trillion U.S. national debt over 10 years, even after accounting for the economic growth it might spur, according to independent government analyses.

The bill would cut the corporate income tax rate to 21 percent from 35 percent and create a 20 percent income tax deduction for owners of “pass-through” businesses, such as partnerships and sole proprietorships.

Stock markets have been rallying for months in anticipation of sharply lower tax rates for corporations, with Wall Street’s three major equities indexes closing at record highs on Friday.


Reference: Reuters

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