Exactly eleven months of a Donald Trump presidency, his administration has secured its first legislative campaign promise on tax reform as the United States House of Representative pass, for the second time in two days, the Tax Reform and Jobs Act after the Senate voted 51 to 49 Tuesday night with no single Democratic senator supporting the legislation.
The Republicans see it as a stimulus package for growth for it provides permanent tax breaks for corporations from 35% to 22% bringing the tax brackets on the par with other industrialized countries of the world while their Democratic counterparts see the bill as a tax break for the wealthy and declined to support it.
This legislative victory fulfils the president campaign promise to simplify the tax system and lower taxes especially for the middle class but it comes at a 1.5 trillion deficit to the national debt over a ten year period according to studies.
The 500-plus pages bill will now make it’s way to the president’s desk to be signed into law after examination. It is believed to take until February of 2018 for the law to go operational and the American taxpayers to begin seeing effects.
Having struggled to repeal and replace the Affordable Care Act commonly referred to as Obamacare in October, the Republicans are claiming this legislative win promised to be delivered before Christmas as they look forward to midterm elections come next year.
Benson Neba, BaretaNews Foreign Correspondent
1 comment
Taxes have a leverage or an impediment to investment and economic development. The right level of tax cut to foster economic investment is always required. this also means doing good calculations for the short term and long term gains.