The Republican-led House of Representatives has approved the first major tax reform legislation in 31 years.
The Tax Cuts and Jobs Act passed by a 227-201 margin Thursday afternoon. The legislation, in its current form, collapses the number of tax brackets to four: 12 percent, 25 percent, 35 percent, and 39.6 percent. It also:
raises the standard deduction to $12,000 from $6,350 for individuals, doubled for married couples;
expands the child tax credit to $1,600 from $1,000 per child;
eliminates the estate tax, also known as the “death tax”; and
immediately and permanently cuts the corporate tax rate to 20 percent from 35 percent.
After the bill’s passage, the White House issued the following statement from President Donald Trump:
President Donald J. Trump applauds the House of Representatives for passing the Tax Cuts and Jobs Act — a big step toward fulfilling our promise to deliver historic tax cuts for the American people by the end of the year. We are working together to allow hardworking, middle-class families to keep more of their money, and to empower our companies and workers to dominate their global competition. A simple, fair, and competitive tax code will be rocket fuel for our economy, and it’s within our reach. Now is the time to deliver.
The Tax Cuts and Jobs Act faced opposition from Republicans in high-taxed states. So far, only one Senate Republican has expressed opposition to the legislation.