The House of Representatives passed a massive tax reform bill on Thursday aimed at cutting taxes for businesses and individuals, which is a major step in the Trump administration’s effort to overhaul the tax system.
The bill, which passed with “227 votes in favor and 205 against,” had to survive opposition from several House Republicans as 13 of its members ultimately voted against the plan.
The House plan would permanently chop the corporate tax rate to 20 percent from 35 percent and make other tweaks aiming to make businesses more competitive. It would reduce individual tax brackets to four from seven and make changes to several tax breaks. Among them, the bill would limit state and local deductions and the mortgage interest deduction, eliminate the personal exemption and nearly double the standard deduction.
The vote marks a significant achievement as Republicans push to put a tax bill on President Donald Trump's desk by Christmas. Trump, who along with most congressional Republicans ran on a pledge to trim taxes, went to Capitol Hill to push GOP lawmakers to support the bill before the vote.
Senate Republicans are now trying to pass their own bill in the next two weeks as several Republican senators have already expressed doubts over the way the House bill is currently written.
The biggest difference between the Senate plan and the House plan is "the treatment of state and local tax deductions." The Senate's bill would completely do away with those deductions, which could potentially turn off many House Republicans who voted for allowing up to $10,000 in property deductions in the bill they passed on Thursday.