Finance

US House OKs tax overhaul, but stumbles on details

US House OKs tax overhaul, but stumbles on details

The top Democrat on the House Ways and Means Committee, which drafted the bill, said Republicans falsely promised their revision would simplify taxes so much that it would allow people to file taxes on a postcard.

"Future generations will remember who cast votes to raise taxes on 86 million middle class households and heap $1.5 trillion in deficits on our children and grandchildren", added House Democratic Whip Steny Hoyer of Maryland. The business tax cuts would take effect in January.

Democrats say the bill will widen the income gap between rich and poor Americans, while adding $1.5 trillion over the next 10 years to the mounting $20 trillion US national debt.

Republicans argue that corporations, flush with cash, will create more jobs and boost the economy.

Ryan rejected polling that shows the bill is widely unpopular. The Senate is expected to vote Tuesday evening.

House Speaker Paul Ryan, R-Wis., spoke on the House floor moments before the vote and said the legislation will "help hard-working Americans who have been left behind for too long".

"That's just cherry-picking the numbers", Brady said.

In addition to cutting taxes for corporations and the wealthy, the legislation promises to be uniquely hazardous for women and families, despite meaningless assurances from Ivanka Trump to the contrary.

In an early morning tweet Tuesday, Trump savors what would be his biggest legislative accomplishment as president, and says "DOW RISES 5000 POINTS ON THE YEAR FOR THE FIRST TIME EVER - MAKE AMERICA GREAT AGAIN!" In reality, Richard Neal of MA said, "You're going to need to carry a billboard around with you" to understand what's in the bill.

The Tax Cuts and Jobs Act (TCJA) will now be sent to the Senate.

The bill's main features are cuts in the corporate tax rate, an end to the estate tax, a reduction in rates for most tax filers and an increase in the individual exemption. "Enjoy. And create many attractive JOBS!" John McCain, who is in Arizona receiving care for complications from his cancer treatment, is not expected to be in Washington to vote for the bill, bringing Republicans' vote total to 51.

The House's vote puts the Republican Party and President Donald Trump on the brink of their first major legislative success of the year, one that's always been a priority for Ryan, many congressional Republicans, and the party's high-dollar donors.

Once the lower chamber approves the measure, the Senate is expected to quickly follow suit.

The Senate result was in doubt in recent weeks.

Only on Friday did Senate Republican leaders cement the needed support for the legislation, securing endorsements from wavering GOP senators Marco Rubio of Florida and Bob Corker of Tennessee. More holdout GOP senators- moderate Susan Collins of ME and Mike Lee of Utah - came into the fold on Monday.