House passes massive tax package; Senate to vote next

The massive $1.5 trillion package would touch every American taxpayer and every corner of the U.S. economy, providing steep tax cuts for businesses and the wealthy, and more modest tax cuts for middle- and low-income families.

Posted: Dec 19, 2017 2:52 PM

WASHINGTON (AP) — Gleeful Republicans on Tuesday muscled the most sweeping rewrite of the nation's tax laws in more than three decades through the House. House Speaker Paul Ryan dismissed criticism of the widely unpopular package and insisted "results are what's going to make this popular."

The vote, largely along party lines, was 227-203 and capped a GOP sprint to deliver a major legislative accomplishment to President Donald Trump after a year of congressional stumbles and non-starters.

Senate Majority Leader Mitch McConnell, R-Ky., said the Senate would vote Tuesday evening, sending the legislation to Trump for his signature.

The massive $1.5 trillion package would touch every American taxpayer and every corner of the U.S. economy, providing steep tax cuts for businesses and the wealthy, and more modest tax cuts for middle- and low-income families. It would push the national debt ever higher.

The standard deduction used by most families would be nearly doubled, to $24,000 for a married couple, while those who itemize would lose some deductions.

"We're delivering a tax code that provides more jobs, fairer taxes and bigger paychecks to Americans across the country," said Rep. Kevin Brady of Texas, Republican chairman of the tax-writing Ways and Means Committee. "Our local job creators will see the lowest rates in modern history so they can invest more in their workers and in their future."

Democrats called the bill a giveaway to corporations and the wealthy, providing little if any tax help to the less-than-well-to-do and no likelihood that business owners will use their gains to hire more workers or raise wages.

And the Republicans' contention that the bill will make taxes so simple that millions can file "on a postcard" — an idea repeated often by the president — was simply mocked.

"What happened to the postcard? We're going to have to carry around a billboard for tax simplification," declared Rep. Richard Neal of Massachusetts, the top Democrat on the Ways and Means Committee.

Tax cuts for corporations would be permanent while the cuts for individuals would expire in 2026 in order to comply with Senate budget rules. The tax cuts would take effect in January. Workers would start to see changes in the amount of taxes withheld from their paychecks in February.

During debate, decorum on the House floor was fleeting as two New Yorkers — a Democrat and a Republican — voiced their opinions on the bill. Rep. Joe Crowley, D-N.Y., yelled, "Hell no" in opposition to the bill. Rep. Tom Reed, R-N.Y., replied, "Hell yes!" The proceedings were interrupted several times by protesters shouting from the gallery.

The bill is unpopular among the public, and Democrats plan to campaign against it in next year's congressional elections. Senate Democrats posted poll numbers on the bill on a video screen at their Tuesday luncheon.

"This bill will come back to haunt them, as Frankenstein did," said House Democratic leader Nancy Pelosi.

Not so, said Ryan, who has worked for years on tax overhaul.

"When we get this done, when people see their withholding improving, when they see jobs occurring, when they see bigger paychecks, a fairer tax system, a simpler tax code, that's what's going to produce the results," said Ryan, R-Wis.

The bill would slash the corporate income tax rate from 35 percent to 21 percent. The top tax rate for individuals would be lowered from 39.6 percent to 37 percent.

It scales back a popular deduction for state and local taxes, repeals a key tenet of Barack Obama's Affordable Care Act and allows drilling in the Arctic National Wildlife Refuge.

Despite GOP talk of spending discipline, it is projected to add $1.46 trillion to the nation's debt over a decade. GOP lawmakers say they expect a future Congress to continue the tax cuts so they won't expire. If achieved, that would drive up deficits even further.

Republicans acknowledged they still have to convince many Americans of the benefits of their bill. Many voters in surveys see the legislation as a boost to the wealthy, such as Trump and his family, and only a minor gain for the middle class.

"I don't think we've done a good job messaging," said Rep. Greg Walden, R-Ore. "I don't think we've gotten out there with specifics, and the final bill has only come together in the last week or so. Now, you're able to look at the final product."

The $1,000-per-child tax credit doubles to $2,000, with up to $1,400 available in IRS refunds for families who owe little or no taxes. Parents would have to provide children's Social Security numbers to receive the child credit, a measure intended to deny the credit to people who are in the U.S. illegally.

The legislation also repeals an important part of the health care law — the requirement that all Americans carry health insurance or face a penalty — as the GOP looks to unravel a law it failed to repeal and replace this past summer.

The bill would initially provide tax cuts for Americans of all incomes. But if the tax cuts for individuals expire, most Americans — those making less than $75,000 — would see tax increases in 2027, according to congressional estimates.

Disgruntled Republican lawmakers from high-tax New York, New Jersey and California receded into the background as the tax train rolled. They oppose the new $10,000 cap on the deduction that millions use in connection with state and local income, property and sales taxes. The cap remains in the final bill.

The deduction is especially vital to residents of high-tax states.

Several defectors reaffirmed their "No" votes for the final bill on Tuesday. Rep. Peter King conveyed what people in his Long Island, New York, district were telling him about the tax bill: "Nothing good, especially from Republicans. ... It's certainly unpopular in my district," he said.

Minnesota Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 40767

Reported Deaths: 1533
CountyConfirmedDeaths
Hennepin13054790
Ramsey5127233
Dakota257094
Stearns248119
Anoka2360111
Nobles16766
Olmsted123518
Washington122840
Mower9742
Rice8738
Scott8234
Clay60138
Kandiyohi5871
Blue Earth5442
Wright5165
Carver4421
Todd4022
Sherburne3445
Lyon3322
Freeborn3090
Watonwan2450
Steele2431
Benton2353
St. Louis21816
Nicollet19112
Martin1725
Cottonwood1380
Goodhue1388
Winona13615
Le Sueur1191
Pine1110
Crow Wing11012
Chisago1051
Otter Tail1041
McLeod990
Dodge970
Carlton890
Polk863
Unassigned8638
Isanti800
Chippewa791
Waseca750
Douglas690
Itasca6912
Murray680
Pipestone674
Meeker621
Morrison621
Faribault610
Becker570
Jackson570
Sibley572
Pennington530
Beltrami430
Brown432
Renville372
Mille Lacs362
Wabasha350
Fillmore310
Rock310
Yellow Medicine310
Houston290
Swift291
Grant240
Norman210
Redwood210
Roseau210
Wilkin213
Cass192
Big Stone170
Koochiching171
Kanabec161
Wadena160
Aitkin150
Lincoln130
Marshall120
Pope120
Clearwater100
Mahnomen101
Stevens100
Hubbard80
Lake60
Traverse60
Lac qui Parle40
Red Lake40
Kittson20
Cook10
Lake of the Woods00

Iowa Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 34080

Reported Deaths: 742
CountyConfirmedDeaths
Polk7196182
Woodbury331744
Black Hawk245759
Buena Vista173311
Johnson14058
Linn136683
Dallas136531
Marshall108019
Scott100210
Dubuque91822
Story8515
Pottawattamie80612
Wapello71431
Muscatine68544
Crawford6793
Sioux4970
Tama48229
Wright3971
Louisa36513
Plymouth3455
Webster3454
Jasper33717
Warren3111
Dickinson2953
Cerro Gordo2661
Washington2499
Hamilton1981
Boone1641
Clay1481
Clarke1433
Allamakee1384
Clinton1301
Shelby1200
Mahaska11917
Carroll1101
Poweshiek1108
Bremer1067
Pocahontas1061
Franklin1040
Des Moines1002
Emmet950
Cedar941
Henry933
Hardin890
Cherokee821
Taylor810
Monona780
Marion770
Floyd762
Benton741
Guthrie734
Jones690
Osceola660
Sac650
Butler642
Buchanan621
Jefferson620
Calhoun612
Iowa611
Humboldt591
Hancock581
Harrison580
Delaware561
Fayette560
Jackson560
Lee542
Madison532
Monroe517
Lyon500
Clayton483
Palo Alto480
Grundy470
Mills470
Winneshiek450
Mitchell440
Davis421
Kossuth410
Union380
Howard370
Lucas344
Winnebago330
Greene300
Chickasaw290
Cass270
Unassigned270
Ida230
Keokuk231
Worth220
Appanoose213
Van Buren210
Page200
Adair170
Audubon161
Ringgold151
Decatur130
Montgomery112
Wayne110
Fremont100
Adams80
Rochester
Overcast
64° wxIcon
Hi: 80° Lo: 60°
Feels Like: 64°
Mason City
Few Clouds
69° wxIcon
Hi: 81° Lo: 62°
Feels Like: 69°
Albert Lea
Scattered Clouds
70° wxIcon
Hi: 79° Lo: 61°
Feels Like: 70°
Austin
Overcast
66° wxIcon
Hi: 80° Lo: 61°
Feels Like: 66°
Charles City
Overcast
70° wxIcon
Hi: 81° Lo: 62°
Feels Like: 70°
Cooler air finally filtering in, rain chance returns Saturday
KIMT Radar
KIMT Eye in the sky

Latest Video

Image

Connecting with a loved one with dementia during the pandemic

Image

Bruins set to host all-star game

Image

COVID-19 Cases Expected to Spike in North Iowa

Image

Training hard for a season that might not happen

Image

Sean's 6pm Weather 7/10

Image

Sweet Corn season kickoff

Image

Getting caught in the act

Image

Forum tomorrow: educating young voters

Image

Donation to Channel One Food Bank

Image

Concern over spread of COVID-19 downtown

Community Events