TAX reforms to benefit the “ultra-rich” were approved by the US Senate yesterday in President Donald Trump’s first major legislative victory.
Mr Trump took to Twitter to celebrate the approval of the $1.5 trillion (£1.1 trillion) tax bill that hands large tax breaks to corporations and small businesses.
Republicans claim the tax overhaul — the most drastic seen in the US for over 30 years — will put $4,000 (£2,982) into the pockets of working families because the corporate tax cuts would “trickle down” from the top.
Under the reform package, corporate tax will be slashed from 35 per cent to 21 per cent with individuals facing lower tax bills until 2025.
Democrats warn that the reforms are designed to benefit the “ultra rich” in an attempt to reduce the national deficit.
The Tax Policy Centre think tank estimated that any short-term benefits would be negligible by 2027. And it found that 53 per cent of taxpayers would face higher bills, many of them in the lower income brackets.
Analysts have suggested that the main beneficiaries will include the extremely wealthy and those sending children to private schools with families living in high-tax, high-cost states set to lose out.
Voting was carried out along party lines with the Republicans in favour while the Democrats opposed the Bill. The House approved reforms by 227 to 203 with the Senate vote closer at 51 to 48 in favour.
Security staff bundled out protesters who shouted out “kill the Bill” from the Senate’s public gallery before the vote was announced.
A petition by the US’s largest federation of unions AFL-CIO said the labour movement was “putting politicians and corporations on notice” demanding the pay rise that they had been promised as a result of the Bill.
AFL-CIO secretary-treasurer Liz Shuler said that Republican lawmakers had promised corporations would use money from their tax cuts to boost wages and job numbers.
However she shared economists’ fears that the reforms would “funnel more money to CEOs” with tax loopholes used to outsource US jobs.
“A whopping 62 per cent of the tax breaks in the proposed legislation go to the wealthiest 1 per cent,” she said.
“Extreme legislators and corporate lobbyists authored many of the economic policies that have rigged the game against working families.
“Now it’s time for working people to hold corporations and politicians accountable.”
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