In 2017, GOP Tax Bill, a tax reform bill was placed by the ruling Republican party before the Senate and House of Representatives for their approval.
The Budget Committee of both the Senate and House of Representatives approved the GOP Tax Bill first and then it came for comprehensive voting on the floor of both these houses.
The bill got passed on 2nd December 2017 in the Senate based on majority votes, in favor.
However, a final version of the GOP tax bill is still awaited to be passed with some tax modifications, after getting the mutual agreement vote from Democrats, the opposition party.
Aim Of Republicans In Bringing The GOP Tax Bill
Republicans want the economic growth of the country to be enhanced in a big way and major tax reforms are required.
They feel strongly that the passage of the GOP Tax Bill is needed as good tax reforms for a long time have not happened and it is impeding the progress of the country.
Impact of GOP Tax bill on:
- Students – Graduate students across the USA state that the GOP Tax bill will hit them hard as their tuition fees waiver become taxable. They need to pay more than $2000 a year now, making life really difficult.
- Businesses – Many local businesses in the country comprising owners of a restaurant, bars, game centers, and others have voiced their concerns.
- For Low-income group – It is very difficult for these people who get the benefits of government-sponsored federal safety net programs to enjoy hereon as the programs have the risk of non-continuation.
- Impact on Lower Middle and Middle – Class salaried families – /There will be a mild individual tax deduction from 7% to 4%. However, they will be subject to bear higher expenses, pertaining to the education and medical needs of their children. A lot of Americans are likely to lose out their health insurance as part of the major tax overhaul done in the GOP Tax Bill.
- Higher income groups and big businesses – Big businesses and wealthy individuals stand to gain a lot from the GOP tax bill in terms of more deductions on their income.
Higher income groups are given many tax deductions where big property inheritance and ways that help them avoid income tax from their business or work income are mentionable.
Companies doing reasonably big and huge business enjoy a big cut in their corporate tax from 35% to 20%.
Top management executives in big companies will be largely benefited since their packages are linked to stock market performance and they always remain far ahead than the average worker.
Prevalent Feelings In The Country About GOP Tax Bill
With Republicans, eagerly waiting for the final GOP tax bill to be passed in the Senate shortly, the stiff opposition is coming for it.
The opposition is not just confined to Democrats, the opposition party in Senate House and House of Representatives.
Majority of the general public in the USA, including economists and related experts, are quite apprehensive about this bill and its negative effects.
The support of Democrats is also required for the Republicans to pass the GOP Tax Bill in the Senate and this will call for more modifications in the legislation.
Latest News about the 2017 GOP Tax Bill – Republicans are showing utmost keenness in passing the final version of the GOP Tax bill with some plans
The GOP Tax bill was passed in the Senate on December 2, 2017, but still, a final version of this is yet to materialize and get passed.
The Republican lawmakers are hastening themselves with an optimistic outlook to reach a mutual agreement in bringing the final GOP tax bill.
They are hopeful of passing it with a comfortable majority within a week’s time and are now working on a plan where:
- There would be a slight increase in the proposed corporate tax rate
- To lessen the top rate on the richest Americans
- To scale back the present mortgage interest rate deduction