The US Senate has passed a controversial overhaul of the US tax code that will slash corporate rates that many believe will ultimately boost the economy, create jobs, and bring back investment.
The tax reform legislation was approved by House Republicans over two weeks ago but had needed full Senate approval for it to be passed. This was achieved on Saturday (2 December), with talks set to begin this week with the Senate and House of Representatives over crafting a Bill.
US President, Donald Trump, who had promised tax reform during is election campaign, is hoping to sign it into law by Christmas.
In a tweet following the vote, he wrote: “We are one step closer to delivering MASSIVE tax cuts for working families across America. Special thanks to @SenateMajLdr Mitch McConnell and Chairman @SenOrrinHatch for shepherding our bill through the Senate. Look forward to signing a final bill before Christmas!”
This was followed by a second tweet in which Trump wrote: “Biggest Tax Bill and Tax Cuts in history just passed in the Senate.”
Biggest Tax Bill and Tax Cuts in history just passed in the Senate. Now these great Republicans will be going for final passage. Thank you to House and Senate Republicans for your hard work and commitment!
— Donald J. Trump (@realDonaldTrump) December 2, 2017
The measure will cut the federal corporate tax rate to 20% from the current 35%, reduce taxes for small business pass-throughs, and lower taxes for middle-class workers. The National Retail Federation (NRF) says it would bring investment back to the US that has gone overseas, while also helping small businesses and consumers.