How a Republican-led Senate will vote on a GOP-backed tax plan
The House voted Wednesday to move the House GOP tax bill to the Senate floor, sending it to President Donald Trump’s desk for a vote.
The Senate will hold a final vote next week on the measure.
It’s unclear whether Trump will sign the legislation or veto it, and it’s unclear if he will sign it without a full-blown tax cut.
But it’s a clear sign that he’s willing to move on from the GOP health care plan.
House Ways and Means Chairman Kevin Brady, R-Texas, told reporters Wednesday that the House passed a bill that would reduce the top individual tax rate from 35 percent to 20 percent.
Republicans will need a two-thirds majority to pass it.
It will need to pass the Senate, which currently has 50 senators, to become law.
The House measure would reduce taxes for individuals and families earning $200,000 a year or less and would eliminate taxes for couples earning more than $250,000.
It would also cut taxes on capital gains and dividends, with rates ranging from 14.8 percent to 12.8.
It does not include a child tax credit, which would provide some relief to families and the middle class.
Democrats have said the plan doesn’t provide enough relief for families earning less than $300,000 or married couples making more than the $250-per-child threshold.
The bill also includes a measure that would end the estate tax and repeal a tax on capital losses and dividends.
The Republican-controlled House passed the tax plan by a vote of 231-206 in April.
It now heads to the White House for a final Senate vote.
House Speaker Paul Ryan, R.W., said the bill is “designed to spur growth, create jobs, and lower taxes for middle-class families.”
Ryan said Wednesday that Republicans will continue to negotiate a bill to raise the debt ceiling, which could happen as early as this week.
The White House on Wednesday said it would use its veto pen to block a House tax bill that cuts taxes on small businesses and corporations.
Ryan said the Senate bill would cut taxes for corporations, not individuals.
The measure would also add $1.4 trillion in spending cuts to the 2018 budget and allow states to opt out of the Affordable Care Act.
The president on Wednesday defended the bill.
“I think that it’s going to be good for the American people, it’s good for businesses and it’ll create more jobs,” Trump said during a news conference in the White Street Conference Center in Washington.
The GOP health bill passed the House last month, but Republicans have not yet been able to garner enough support to pass a tax bill.
The legislation, however, would provide relief for the middle and working classes and would give the president more flexibility on spending cuts.
Democrats, who have been pushing to raise taxes, have been fighting to get the Senate to approve the bill before the holidays, a tactic that’s typically reserved for a tax overhaul.
Democrats argue that tax cuts should not be tied to a spending bill.
Republicans on Wednesday blasted the idea as an “expensive, reckless, and irresponsible” giveaway.
“It’s time for the president to stop playing politics with this country’s future and focus on solving the real problem of our broken health care system,” Rep. Peter King, R.-N.Y., said in a statement.