The Senate Finance Committee approved on Thursday the chamber’s GOP tax plan to overhaul the tax code. The bill was approved in a party-line vote, 14-12, sending the proposal to the full Senate.
“For the millions of hard-working Americans who need more money in their pockets and the chance of a better future, help is on the way,” said Senate Majority Leader Mitch McConnell, adding that after Thanksgiving he will bring the legislation to the floor where it is to be discussed and considered.
Republicans will then be allowed only two defections in case none of the Democrats vote for the bill. The bill includes temporary individual tax cuts, expiring in 2025, and permanent cuts to corporate taxes to 20 percent, as well as a repeal of Obamacare’s individual mandate. Republicans hailed the measure as something that would benefit the middle class.
“This is a good bill that delivers on our promise to provide middle-class tax relief and grow our economy,” said Orrin Hatch, who modified the bill.
Democrats, on the other hand, criticized the bill, in particular, the individual mandate repeal, which they claim will leave millions without health insurance.
“I think this is indefensible, partisan legislation,” said the top Democrat on the Finance Committee, Ron Wyden.
The main point of disagreement between Republicans and Democrats was analyses by the Joint Committee on Taxation which found that the repeal included in the bill will lead to increased taxes for those individuals earning between $20,000 and $30,000 as a result of fewer people enrolling for health insurance plans and receiving subsidies.
The committee also found that starting from 2027, those making about $75,000 will also see an increase in taxes due to individual tax cuts expiring. Hatch refuted these findings and maintained that “Anyone who says that we’re hiking taxes on low-income families is misstating the facts.”
Democrats proposed several amendments, which were quickly voted down by Republicans. Several GOP senators have raised concerns about elements of the bill, including how the mandate repeal will affect the debt, but none of them have explicitly said they would vote “no.” If the Senate passes the measure, differences between it and the House bill would have to be reconciled.
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