The House voted 227-205, with no Democrats support for the bill and 13 Republicans also voting against. Trump made a rare visit to Congress ahead of the division to rally support for what he has described as a ‘once in a generation change’ and a ‘big, beautiful Christmas present’.

The White House said the vote was a ‘big step’ and said: ‘A simple, fair, and competitive tax code will be rocket fuel for our economy, and it's within our reach. Now is the time to deliver.’

Attention is now turned to the Senate, which is trying to build support for its own version of the tax reform bill. The situation is complicated by the fact the two bills, while sharing many characteristics, have some differences which would need to be reconciled, relating partly to the timescale for some of the changes and whether or not healthcare insurance arrangements will change. 

There are also signs that some Republicans in the Senate are not in favour of the bill as they feel it does not do enough for small businesses rather than multinationals, and without Democratic support, the Senate can afford to lose only two Republican votes.

The House plan would cost more than $1.4 trillion to 2027, while the Senate version would cost $1.5 trillion, according to estimates from the Joint Committee on Taxation.

In essence, the tax reforms would slash the corporate rate from 35% to 20% and change how overseas profits and payment from overseas subsidiaries are taxed.

They would also eliminate a range of targeted benefits for individuals and families, in favour of boosting the amount people can deduct from their tax bill.

Republicans estimate that the average American family of four will see their taxes lowered by $1,182 (£895).

Report by Pat Sweet