The Trump administration moves one step closer to a legislative accomplishment – the House voted today on the first major tax bill overhaul since the Reagan-era – three decades prior. This move, coming quite late in the year, could potentially help the GOP in the upcoming congressional elections, early 2018. This bill is set to increase the federal deficit by $1.5 trillion over the next decade, from the already massive $20 trillion.
A highlight of the bill is to cut back, or eliminate entirely, a number of popular tax deductions, affecting state and income taxes. This will lead to a tax hike for millions of Americans. However, alongside this, the House voted to preserve a capped deduction in property taxes.
Of course, this came with much criticism from their friends (more foes than friends by now) across the aisle.
“It’s a shameful piece of legislation, and the Republicans should know better,” House Democratic leader Nancy Pelosi told lawmakers before the vote.
However, the S&P 500 index rose up around 1% today, a direct response to the House vote.
Winning the tax overhaul in the Senate is the tougher battle – already some Republican Senate members have come out against this the House’s version of the tax overhaul, and have promised to “fix it” before passing it. Nonetheless, they do want to see this bill pass before the end of the year. They seem to have a mandate of their own to have the bill sitting on President Trump’s desk by Christmas Day, 2017.
The financial well-being of the American public will be politically driven, yet again.
The breakneck speed at which the House passed the bill speaks to the shrewd nature of the lawmakers sitting in chambers, right now. It seems clear now, that political power trumps the well-being of the middle class.
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