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Xinhua | Updated:2017-11-17 09:06WASHINGTON – US House on Thursday approved its version of tax cut plan in an along-party-line vote and delivered a major legislative achievement.
The 227-205 vote on Thursday marked a key milestone for President Donald Trump and his fellow Republicans, as they considered this legislative achievement as a major push for their quest to cut taxes for businesses and individuals.
The House-version tax cut plan is estimated to bring $1.4 trillion to fiscal deficit over the next decade. Bipartisan studies showed that the benefits of the tax cuts would eventually go to the highest earners, while some middle-class households might pay higher taxes.
The tax plan consolidates individual tax brackets to four from seven and reduce the corporate tax rate from 35 percent to 20 percent, its lowest point since 1939.
It also eliminates a number of tax breaks and deductions, increases the child tax credit, abolishes the estate tax by 2025 and changes the US system for taxing multinational corporations.
“Passing this bill is the single biggest thing we can do to grow the economy, to restore opportunity, to help these middle-class families that are struggling,” House Speaker Paul Ryan told lawmakers before the vote.
White House argued that the corporate tax cut could boost US economy to increase by 3 percent to 5 percent in the long term, and American annual household income could increase by an average of $4,000.
According to the estimates by the think tank Tax Policy Center, the tax cut plan would reduce taxes on average for all income groups in 2018 and 2027. However, the largest cuts, in dollars and as a percentage of after-tax income, would accrue to higher-income households.
All Democrats in the House chamber voted against the plan. They called the plan a giveaway to wealthy business owners and warned that it would drive the country deeper into debt.
Focus now turns to the Senate. The Senate is discussing its own version of tax cut plan and its not clear whether the Republicans in Senate could secure enough votes to pass it.
Senate Republicans are aiming to vote on their tax plan during the week after the Thanksgiving holiday.
If the Senate passes its bill, the two chambers on the Hill will have to reach a final version of the legislation which needs to go through both chambers again.PhotoMelania Trump tweets of ChinaGlimpse of Bonn Zone of UN climate talks in Bonn, GermanyFrom Bali to Da Nang, Xi expands Chinas footprints in Asia-Pacific developmentPanama dedicate its new embassysQuake in South Korea left 1,500 homeless, dozens injuredSudan buys two Airbus planes worth $60m with Chinese fundingMost Viewed in 24 HoursExclusiveFamily of Chinese man killed in US relives memoriesChinese elements in western mainstream mediaHighlights of US President Donald Trumps first China visitWeekly PhotoThe world in photos: Nov 6-12NewsmakerMelania Trump tweets of ChinaGlimpse of Bonn Zone of UN climate talks in Bonn, GermanySpecialPremier Li attends ASEAN meetings, East Asia SummitPresident Xi attends APEC meetingReporters JournalGentrification, segregation cause for concern in growing DCTimes Square stunt drives home a bittersweet realityChina-JapanComfort woman, 90, dies at homeChina-USLucky money comes up trumps with Year of the Dog releaseChina-EuropeChinese heroes get Belgium statueChina-AfricaChinese naval hospital ship Peace Ark arrives in MozambiqueBACK TO THE TOPHOMECHINAWORLDBUSINESSLIFESTYLECULTURETRAVELWATCHTHISSPORTSOPINIONREGIONALFORUMNEWSPAPERChina Daily PDFChina Daily E-paperMOBILECopyright 1995 -var oTime = new Date();
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