President Donald Trump has clinched a major victory in his battle to introduce the most significant reform of the US tax code in a generation, winning a vote in Congress which means the necessary legislation will be fast-tracked
The House of Representatives narrowly passed a budget resolution with a 216-212 vote which will see the controversial plans push ahead. The budget includes reconciliation rules that will allow the Senate to pass tax reform with only a simple majority rather than the usual 60 to overcome a filibuster.
Kevin Brady, the Republican chair of the House ways and means committee, has said there are plans to release a draft tax plan on 1 November. Previously Trump has indicated he wants to pass tax reform bill this year, but because of the levels of opposition to some of its key changes, it is more likely to happen later in 2018.
As well as simplifying the tax code and cutting personal tax rates, Trump’s proposals include a one-time repatriation tax designed to encourage US multinationals to bring back profits held offshore, and a lower corporation tax rate. However, some Republicans opposed the budget resolution because the plans also include removing state and local tax deduction (SALT) relief.
Report by Pat Sweet
