The November elections are drawing near and Republicans have increased their speed of legislation. They are expanding the new tax law with each passing day and recently, the GOP bill was presented in the house. This new bill would make the tax cuts permanent which were applicable on individual and small businesses.
Friday, the voting was held which went 220 to 191 in a House which is dominated by Republicans. This is the second tax cut proposal which has been presented and approved by Republican leaders in a matter of less than 1 year. Considering the ratio of favor and against vote, it is along the party lines. Democrats are continuing the strong opposition to tax-cut legislations. They have come up with the point that this kind of bills will favor the corporations and wealthy individuals while there is nothing in it for the middle income Americans.
Considering the votes, 11 Republican House members who face the tough re-elections and are fighting I the high-tax states of New York, New Jersey, and California, which are Democratic leaning areas, voted against the bill presented by their party.
As for the GOP lawmakers, they are making efforts to hold onto their seats which are given to them from suburban districts, areas where president Trump isn’t a very popular figure. The individuals living in these states see a decent increment in the federal tax bills as there is $10,000 cap on state and local deductions in tax law. With the recent bill that has been passed, this cap would be made permanent.
The bill is considered weak in the Senate because of various reasons. There is only a slim Republican majority for this bill and the fact that everyone is debating over this bill increasing the deficit between middle income and wealthy Americans make it pretty weak. Republicans are rewriting the tax legislations since last year and Trump refers to it as his signature legislative achievement. However, it has all the potential to contribute to a $1.5 trillion deficit is as much as 10 years.
The recent bill approved this Friday will add a deficit of $545 billion till 2029. The estimation was given by the Congress’ bipartisan Joint Committee on Taxation.
On the other side of the picture, the House Republicans see it as a champion achievement and a legislation that would help middle class and small businesses.