This is the first major reworking of the U.S. tax code in decades.
A major tax overhaul of the current American tax system is one step closer to being implemented. According to a recent CNBC article, both the House and Senate have passed the proposal, sending the bill to President Trump's desk. The Senate passed the proposal early Wednesday morning with a 51-48 vote, with strict party line division. All GOP senators voted for the bill, with the exception of Sen. John McCain who was not present for the vote. Due to a few technical changes to the bill in the Senate, the bill was then sent back to the House for another vote, where it secured enough votes to pass again.
The plan will significantly decrease tax rates for businesses and temporarily for the majority of individuals. Members of the GOP believe the more than $1.4 trillion in tax cuts will encourage businesses to spend more on wage growth, hiring and investments, while Democrats have concerns over the $1 trillion projected federal budget deficit over the next decade from these cuts.
The GOP tax plan is expected to become a law for next year.
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