20 December 2017•Update: 20 December 2017
By Michael Hernandez
WASHINGTON
Congress passed a sweeping $1.5 trillion overhaul of the tax code Wednesday, handing President Donald Trump his first major legislative victory with one month left in his first year in office.
The Senate made small changes to the bill before passing it 51-48 along party lines early Wednesday, forcing a second House vote before it could officially pass the legislature. The House re-passed the bill 224-201 later Wednesday.
After they voted against the bill Tuesday, 12 Republicans again voted against it, breaking with their party's leadership.
Trump is expected to sign the bill later this week and will host Senate and House lawmakers at the White House on Wednesday for what the White House is dubbing a "bill passage event."
Before the final House vote, Trump hailed the "historic victory for the American people" as a boon for the middle class.
"The heart of our bill is a tremendous amount of relief for the middle class," he said before meeting with his Cabinet. "This bill means more take-home pay. It will be an incredible Christmas gift for hard-working Americans."
The bill permanently slashes the corporate tax rate from 35 percent to 21 percent. It also maintains the current number of tax brackets, lowering the rate for many of the seven tax groups. Unlike the corporate cuts, however, the dips to individual rates are expected to expire by the end of 2025 if Congress does not renew them.
Reiterating former President Ronald Reagan-era economic policy, Republicans are banking on the massive corporate tax cut boosting jobs, increasing wages and driving foreign investment. But some surveys of business leaders indicate corporations will use the money for stock buybacks and passing on profits to shareholders.
The stock market has bounded about 5,000 points since Trump assumed office, largely on hopes that he would be able to deliver on promises a tax overhaul.
In another major victory for Republicans, it also neuters the legal provision forcing Americans to purchase health care under the Affordable Care Act, also known as the individual mandate, by removing the tax penalty that ensures compliance.
"Obamacare has been repealed in this bill," Trump declared even though the act is still the law of the land.
Democrats have staunchly criticized the bill, as a major boost for the rich and a blow to everyone else.
"I believe the entire Republican Party, will come to rue the day they voted for the #GOPTaxScam," Chuck Schumer, the top ranking Senate Democrat said on Twitter. "Yet again, Republicans showed their only priority is to give the richest few a bigger piece of the pie."
