A Breakdown Of The Republican Tax Bill
CHICAGO (CBS) -- The Senate has passed a nearly $1.5 trillion Republican tax bill that's historic in scope and an urgent political priority for President Donald Trump and the GOP.
The vote was 51-49, largely along party lines. Not a single Democrat voted in favor of the legislation, which was crafted behind closed doors by Senate Republican leaders. Tennessee Sen. Bob Corker, who calls the growing debt a national security threat, joined Democrats in opposing the bill.
It would bring the first major overhaul of the U.S. tax system in three decades. The measure must be reconciled with a version the House passed last month.
Illinois U.S. Senator Tammy Duckworth responded to the GOP tax vote by saying "reforms need to focus on helping our nation's small businesses and middle-class families, not Donald Trump's well-connected, ultra-wealthy friends and family. "Working Americans and small businesses, not mega-corporations, deserve a break."
And Illinois U.S Senator Dick Durbin posted on Twitter: "Just in... hashtag GOP tax scam passes on the floor of the world's greatest deliberative body. The Senate GOP rammed through a bill without even reading it."
The Senate bill will still need to be reconciled with the House version, before it can go to the President's desk.
The legislation is said to affect every taxpayer in America.
CBS 2's Lauren Victory has a closer breakdown of the bill.
Expect to see tweaks but one of the most talked about portions of the Senate's bill is the expanded child tax credit.
It increases from $1,000 to $2,000.
In a middle class example from CBS News, a married couple with two children making $71,000 a year together currently pays $3,250 dollars annually in federal taxes when taking a standard deduction.
Under the Senate's new tax plan, with a doubled child tax credit and a lowered tax rate, the same family would now pay under $800 dollars.
This hypothetical changes with slightly different circumstances, including where the couple lives. That affects property taxes.
If this example family itemized, their property tax deductions would be capped at $10,000 under the Senate plan.
The bill passed overnight also lowers the corporate tax rate from 35% to 20%.
Pundits think this will incentivize several businesses to restructure.
Senate Republicans also tacked on a major healthcare related repeal with this bill.
It passed with a section that actually shoots down the individual mandate from the Affordable Healthcare Act.
The House's version doesn't touch that.
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