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Republican tax bill is 'government for sale', say Democrats | Republican tax bill is 'government for sale', say Democrats |
(about 1 hour later) | |
Democrats have labelled the Republican tax bill "government for sale" as Congress sent the historic measure to the president's desk. | |
Donald Trump is expected to sign his first major legislative achievement in the coming days - the biggest rewrite of the US tax code in a generation. | Donald Trump is expected to sign his first major legislative achievement in the coming days - the biggest rewrite of the US tax code in a generation. |
The bill slashes taxes for corporations and the wealthy, while offering mixed, temporary relief to working people. | The bill slashes taxes for corporations and the wealthy, while offering mixed, temporary relief to working people. |
Prominent Democrat Elizabeth Warren said: "It's a heist." | Prominent Democrat Elizabeth Warren said: "It's a heist." |
What happens next? | What happens next? |
Because of a procedural glitch, the bill had to be voted on for a second time in the Republican-dominated House of Representatives. It passed 224 to 201 on Wednesday afternoon. | |
Democrats say that error was caused by Republicans rushing the most sweeping overhaul of the tax system since 1986 through Congress. | Democrats say that error was caused by Republicans rushing the most sweeping overhaul of the tax system since 1986 through Congress. |
In an often secretive process, no public hearings were held and multiple last-minute amendments pushed by lobbyists cropped up in the final version. | In an often secretive process, no public hearings were held and multiple last-minute amendments pushed by lobbyists cropped up in the final version. |
But the legislation's ultimate passage on Wednesday is expected to be a mere formality before the Republican president signs it into law. | But the legislation's ultimate passage on Wednesday is expected to be a mere formality before the Republican president signs it into law. |
The unpopular bill is likely to be a major issue during next year's mid-term congressional elections. | The unpopular bill is likely to be a major issue during next year's mid-term congressional elections. |
Fifty-two per cent of adults said they opposed the tax plan, while only 27% supported it, according to a Reuters/Ipsos poll. | Fifty-two per cent of adults said they opposed the tax plan, while only 27% supported it, according to a Reuters/Ipsos poll. |
Who wins and who loses? | Who wins and who loses? |
Non-partisan analysts say the greatest beneficiaries of the package will be the super-wealthy, multinational corporations and the commercial property industry. | Non-partisan analysts say the greatest beneficiaries of the package will be the super-wealthy, multinational corporations and the commercial property industry. |
In the immediate future, the plan will see the vast majority of taxpayers having lower tax bills, but those cuts expire in 2025. | In the immediate future, the plan will see the vast majority of taxpayers having lower tax bills, but those cuts expire in 2025. |
By 2027, the Tax Policy Center estimates the overall change would be negligible. | By 2027, the Tax Policy Center estimates the overall change would be negligible. |
And 53% of taxpayers would face higher bills, many of them in the lower income brackets. | And 53% of taxpayers would face higher bills, many of them in the lower income brackets. |
The bill is projected to add $1.5tn over the next decade to the $20tn US debt, which Mr Trump promised last year he would eliminate. | The bill is projected to add $1.5tn over the next decade to the $20tn US debt, which Mr Trump promised last year he would eliminate. |
But Republicans argue it will boost the economy and job growth. | But Republicans argue it will boost the economy and job growth. |
The legislation reaches beyond fiscal matters to tick off a wish list of conservative priorities. | The legislation reaches beyond fiscal matters to tick off a wish list of conservative priorities. |
It strikes a serious blow to Obamacare, scrapping the fine levied on Americans who do not buy health insurance. | It strikes a serious blow to Obamacare, scrapping the fine levied on Americans who do not buy health insurance. |
The Congressional Budget Office says this will increase premiums for people who buy medical coverage. | The Congressional Budget Office says this will increase premiums for people who buy medical coverage. |
The bill also opens Alaska's Arctic National Wildlife Refuge to oil and gas drilling, a major defeat for environmentalists. | The bill also opens Alaska's Arctic National Wildlife Refuge to oil and gas drilling, a major defeat for environmentalists. |
What do the Democrats say? | What do the Democrats say? |
They say the legislation will widen the US income gap between rich and poor. | They say the legislation will widen the US income gap between rich and poor. |
As the final vote approached in the Senate overnight, the chamber's Democratic leader Chuck Schumer scolded Republicans for talking during his closing argument. | As the final vote approached in the Senate overnight, the chamber's Democratic leader Chuck Schumer scolded Republicans for talking during his closing argument. |
"This is serious stuff," the New York senator said. "We believe you're messing up America." | "This is serious stuff," the New York senator said. "We believe you're messing up America." |
Among the most outspoken critics are those progressive figures in the party often tipped as possible 2020 presidential contenders. | Among the most outspoken critics are those progressive figures in the party often tipped as possible 2020 presidential contenders. |
Massachusetts Senator Elizabeth Warren tweeted: "Let's call this out for what it is: Government for sale." | Massachusetts Senator Elizabeth Warren tweeted: "Let's call this out for what it is: Government for sale." |
Senator Kirstin Gillibrand accused Republicans of having "put their donors before hardworking middle-class families". | Senator Kirstin Gillibrand accused Republicans of having "put their donors before hardworking middle-class families". |
Senators Cory Booker, of New Jersey, and Kamala Harris, of California, said the bill was a "travesty". | Senators Cory Booker, of New Jersey, and Kamala Harris, of California, said the bill was a "travesty". |
And Tim Kaine, the Virginia senator who was Hillary Clinton's running mate last year, branded the legislation "highway robbery". | And Tim Kaine, the Virginia senator who was Hillary Clinton's running mate last year, branded the legislation "highway robbery". |
Analysis: One final swoop | Analysis: One final swoop |
By Anthony Zurcher, BBC North America reporter | By Anthony Zurcher, BBC North America reporter |
It wasn't exactly easy, but President Trump now has his signature legislative achievement. The self-styled dealmaker-in-chief was finally able to flex his party's majority muscle, overcoming internal dissent to accomplish some long-sought political goals. | It wasn't exactly easy, but President Trump now has his signature legislative achievement. The self-styled dealmaker-in-chief was finally able to flex his party's majority muscle, overcoming internal dissent to accomplish some long-sought political goals. |
What one Congress can do another can undo, of course, and the task ahead for Republicans is selling a sceptical public on the benefits of their plan. | What one Congress can do another can undo, of course, and the task ahead for Republicans is selling a sceptical public on the benefits of their plan. |
While they may argue that Americans will come around once they see lower tax bills, many may have already made up their mind. | While they may argue that Americans will come around once they see lower tax bills, many may have already made up their mind. |
Like Obamacare eight years ago, this tax legislation was passed by partisan muscle alone. And like that law, many Americans view the legislation as largely benefitting others. They will be difficult to convince otherwise. | Like Obamacare eight years ago, this tax legislation was passed by partisan muscle alone. And like that law, many Americans view the legislation as largely benefitting others. They will be difficult to convince otherwise. |
Repealing key provisions of this tax law will be as uniting for Democrats as healthcare repeal was for conservatives. | Repealing key provisions of this tax law will be as uniting for Democrats as healthcare repeal was for conservatives. |
President Trump and Republicans have their victories. They will have to fight to keep them. | President Trump and Republicans have their victories. They will have to fight to keep them. |