President Trump is celebrating the final passage of the Republican tax bill, calling it a “historic victory for the American people.” At a Cabinet meeting, he also applauded the repeal of the Affordable Care Act’s individual mandate requirement. (Dec. 20) AP
WASHINGTON – President Trump enthusiastically declared victory on Wednesday after Republicans in Congress passed a massive tax bill that will affect almost every American household, handing him the first major legislative achievement of his 11-month-old presidency.
“It’s always a lot of fun when you win,” Trump told Republican lawmakers at a pep rally-like event on the South lawn of the White House. “We broke every record,” he said, referring to the size of the tax cuts Trump is calling a “Christmas present” to the American people.
Trump had been pushing Republicans hard to pass the tax bill before the end of the year. Having failed to repeal and replace President Obama’s health care law, Trump invited Republicans over to the White House to trumpet the passage of the tax bill.
After the sweeping tax overhaul passed along a straight party line in both chambers of Congress, Trump said “companies are going to be coming back” to the U.S. Repeating his 2016 campaign slogan, Trump said “we are making American great again. ”
According to the nonpartisan Tax Policy Center, the largest cuts as a share of income will go to taxpayers in the 95th to 99th percentiles of all earners. In 2018, taxes would be reduced by about $1,600 on average, while the plan is projected to add more than $1 trillion to the national debt over the next decade.
While Trump says the tax cuts will spur investment, not a single congressional Democrat voted for them, a historic break from previous major U.S. tax packages.
There is significant skepticism among Democrats that U.S. corporations, already flush with cash, will reinvest the money instead of using it to buy back shares to drive up stock prices. Democrats are also pointing to promises by Republicans to proceed with major cuts to U.S. safety net programs in the new year.
Democrats have also warned that the loss of deductions will actually raise taxes for people in some high-tax states like New York and California…