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Trump closes in on tax victory

China Daily | Updated: 2017-12-21 09:07
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Senate Republican leader Mitch McConnell, accompanied by members of the Republican Conference, speaks at a news conference after the passage of the Tax Cuts and Jobs Acts at the US Capitol in Washington. [Photo/Agencies]

Senate clears way for largest system overhaul in three decades

WASHINGTON-The US Senate narrowly approved a sweeping tax overhaul early on Wednesday, putting President Donald Trump on the brink of his first major legislative triumph nearly a year after he took office.

Hours earlier, Trump's $1.5 trillion deficit-busting tax cuts cleared the House of Representatives, but a rare last-minute snag over parliamentary rules will force the lower chamber to vote on the updated package once again on Wednesday.

The deepest rewrite of the US tax code in three decades provides dramatic tax breaks to corporations, and families at all incomes levels will see their income tax drop starting next year, with the largest benefits going to the wealthy.

In two provisions added on to secure needed Republican votes, it also repeals part of the Obamacare health system and allows oil drilling in Alaska's Arctic National Wildlife Refuge.

The Republican legislation passed the Senate along strict party lines, 51-48, with all Democrats united in opposition.

The vote had appeared destined to a dramatic showdown, especially with Senator John McCain's absence due to cancer treatment meaning Republicans could afford only one defector.

Vice-President Mike Pence presided over the chamber in the event he need to break a tie. But with senators Marco Rubio and Bob Corker backing off their threats to oppose the bill, it ultimately carried through, and Pence pronounced to loud cheers, "the Tax Cuts and Jobs Act is passed".

In the House, 12 Republicans had joined all Democrats in opposition as the bill passed 227 to 203.

Trump, who has pushed to get the measure across the finish line, noted on Twitter that the bill bounces back to the House, and that if the chamber signs off on the minor changes, as expected, there will be a White House news conference on Wednesday at about 1 pm.

Democrats have railed against the legislation as a giveaway to the wealthy and the business community that will widen the income gap between rich and poor, while adding $1.5 trillion over the next decade to the $20 trillion national debt, which Trump promised in 2016 he would eliminate as president.

Democratic Senator Chris Van Hollen said the bill "will harm millions of middle-class families ... It contains huge, permanent giveaways for big banks and corporations, and asks our children, millions of working Americans and senior citizens, and future generations to pay the price".

Senate Republican leader Mitch McConnell rejected the idea. "We've had two quarters in a row of 3 percent growth. The stock market is up. Optimism is high. Coupled with this tax reform, America is ready to start performing as it should have for a number of years," he said.

AFP-REUTERS

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