The US is on the brink of introducing the biggest set of tax reforms for a generation, after President Trump’s flagship bill to slash corporation tax for business and introduce tax cuts for individuals was passed by the Senate, although it needs some final amendments and a second vote in the House before becoming law by the end of this year
The Senate approved the package of reforms by a 51-48 vote. The legislation has already passed through the House of Representatives, but must now return for a further vote later today as there are some minor differences in provisions between the two bills which must be made consistent between both chambers of Congress.
However, the House is expected to pass the bill, which includes a cut to corporate income tax, from 35% to 21%, a 20% reduction on business income, cuts to the tax rate for highest earners and a change that means fewer people will pay inheritance tax.
This would pave the way for Trump to sign the bill into law this week, delivering on his pledge to give the US people ‘one of the great Christmas gifts’.
Report by Pat Sweet
