WASHINGTON, D.C. – The “Tax Cuts and Jobs Act”–a nearly $1.5 trillion tax bill–passed through the House Thursday. The legislation would cut tax rates for corporations and private businesses, overhaul individual tax code and eliminate taxes for wealthy heirs.
The 227-205 can be considered a victory for Speaker Paul Ryan and President Donald Trump.
However, the legislation’s future in the Senate is less clear, with members divided. A recent Joint Committee on Taxation report indicated the bill could raise the average tax rate on Americans making less than $75,000 within the next decade.
The House bill would see the top corporate tax rate cut from 35% to 20%. Certain businesses would see a 25% rate. Individual tax brackets will be cut from seven down to four, with top earners paying 39.6%. Estate tax would be reduced, and eventually eliminated for inheritances over $5.6 million.
Democrats voted unanimously against the act. They said it disproportionately benefits corporations and the wealthy. They also said benefits for middle class families would gradually reduce over time, eventually amounting to a tax increase.
Congressman Greg Walden (R-Ore.) said the act will lead to the creation of an additional 12,358 jobs in Oregon and raise the after-tax income for middle class Oregon families by $2,602. He said, “It’s long past time for tax reform that respects and rewards hard work, makes everyone play by the same rules, and lets Oregonians keep more of their pay check. The Tax Cuts and Jobs Act will help us reach that goal, and I look forward to its continued improvement as it progresses through the legislative process.”
Senator Ron Wyden (D-Ore.) wrote on Twitter, “Not only are Republicans trading Americans’ health care for corporate handouts, but they shot down every amendment for veterans, Medicare & Social Security and red, white and blue jobs.”
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