The Senate voted for the largest US tax reform

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On the night of Saturday, December 2, the US Senate approved a large-scale tax reform bill. 51 Republican senators voted in favor, 48 Democrats and one Republican senator voted against.

According to USA Todaybefore that, the House of Representatives voted for its version of the reform, which brought Donald Trump closer to the goal of reducing business taxes.

The key provision of the reform is a reduction in corporate income tax from 35 percent to 20. Republicans believe that this will increase the competitiveness of the US economy and return trillions of dollars in American corporate profits from abroad. Congressmen from both chambers have no disagreement on this. On the issues of reorganization of taxation of individuals and a number of numerous relaxations, there are, however, different points of view.

In addition, the initiative of representatives of the Republican Party contains changes in the taxation of individuals. Thus, instead of the current scale of the seven categories of progressive income tax, only three are proposed - 12%, 25% and 35%. Currently, the minimum federal income tax is 10%.

The initiative also provides for an extension of the tax credit for children and increases the standard deduction from $ 12 700 for couples to $ 24 000. It also cancels the non-taxable portion of the individual’s income, which this year provided for tax cuts of $ 4 050 for each taxpayer.

The authors had to make concessions, for example, to include an article on tax cuts for small firms and companies whose income goes directly to their owners, and also to allow oil and gas production in the territory of the National Arctic Reserve in Alaska.

Another amendment, long promoted by many Republicans, does not concern taxation at all - it repeals the current rule on the compulsory purchase of health insurance, the price of which has been rising in recent years in the United States.

The meeting lasted more than 15 hours - from 10:00 on Friday morning until almost 02:00 on Saturday night.

Now both chambers must agree on their bills and consolidate them into one single text, which will then be put to the vote again and after approval by the parliament sent for signature to the president.

US President Donald Trump presented the reform in September, he also called it the largest in three decades. Reuters notes that the head of state would like tax changes to take effect before the end of 2017.

The reform will be the first major legislative achievement of Trump and his administration since the new president took office in January.

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