The Senate has passed the tax bill by a simple majority, 51-48. However, before it goes to President Donald Trump, the House must revote on it due to a few provisions that violated Senate rules.

Sen. John McCain (R-AZ) did not vote since he has returned to Arizona following a round of treatment.

Sen. Susan Collins (R-ME) and Sen. Mike Lee (R-UT) came out today as a yes, which means the bill should pass along party lines.

Yes, Democrats. The middle class will receive a tax cut. Congress’s Joint Committee on Taxation said that those in the middle class “will get $61 billion in tax cuts in 2019.” From The Wall Street Journal:

That amounts to 23% of the tax cuts that go directly to individuals. By 2027, however, these households would get a net tax increase, because tax cuts are set to expire under the proposed law.

The calculations are based on JCT estimates of cuts going to households that earn $20,000 to $100,000 a year in wages, dividends and benefits. Those households account for about half of all U.S. tax filers, with nearly a quarter making more and a quarter making less.

Those who make $500,000 or more, a group that makes up 1% of filers, will also receive a cuts worth $61 billion in the first year. By 2027, that cut could be $12 billion.

WSJ points out that that cut “includes income earned by pass-through businesses such as partnerships and S-corporations that pay taxes on individual returns.”

Businesses have also found some surprises in the bill, especially with the corporate tax rate going down to 21% and the elimination of the corporate alternative minimum tax. From WSJ:

The rate takes effect on Jan. 1, a year sooner than proposed in the Senate bill. That promises firms an extra year of lower tax and avoids a delay that worried many tax experts.

“The level of gaming that would have occurred if you would have had a 35% rate in 2018 and a 21% rate in 2019, it would have been truly amazing,” said Steven Rosenthal, senior fellow at the nonpartisan Tax Policy Center think tank.

 
 
donate
Donations tax deductible
to the full extent allowed by law.