Republican National Committee (RNC) Chairwoman Ronna McDaniel praised Republicans in the U.S. Senate for passing the Tax Cut and Jobs Act. The vote was a major victory for President Donald Trump, who made tax cuts his key agenda item and signature piece of legislation for the first year of his presidency
“Thanks to Republican leadership, we are one step closer to delivering historic tax reform for the American people,” said Chairwoman McDaniel said in a statement emailed to People’s Pundit Daily (PPD) early Saturday morning. “President Trump and Republican leaders in Congress made a pledge to expand economic opportunity for all, cut taxes for the middle class and small business owners—and tonight, they kept their promise.”
The bill now heads to conference between the upper and lower chambers, the House of Representatives having passed another version of the bill. Nevertheless, if an agreement is reached, which is expected, it will be sent to President Trump’s desk for his signature. House Majority Leader Kevin McCarthy, R-Calif., called the lower chamber into session early for Monday rather than Tuesday.
It will be the first overhaul to the U.S. tax code in 31 years. While the U.S. was paralyzed for decades on the issue until now, the rest of the world lowered their corporate tax rates. The Tax Cuts and Jobs Act slashes the U.S. corporate tax rate to 20%, making the U.S. far more competitive in a global economy.
“According to the non-partisan Joint Committee on Taxation, every income bracket would see tax relief under this bill,” Senator John McCain, R-Ariz., said in a statement. “The child tax credit would be doubled to $2,000 per child and the tax code would be substantially simplified.”
Worth noting, with the approval of the Tax Cuts and Jobs Act, Republicans voted for the repeal of ObamaCare’s individual mandate, a major step forward toward ending an unpopular part of the healthcare law. Given the more conservative bent in the U.S. House, the repeal is not expected to be problematic on conference.
Meanwhile, the markets are continuing to climb on overwhelmingly positive economic data and the potential for tax reform. The Dow Jones Industrial Average hit 24,000 for the first time ever, only days after the Bureau of Economic Analysis (BEA) earlier in the week revised gross domestic product (GDP) up to 3.3%.
If 4Q GDP forecasts hold, the first year under President Donald Trump will at least match the strongest year (2.7%) under Barack Obama. As People’s Pundit Daily (PPD) recently reported, it’s likely the first year under Mr. Trump will surpass the strongest year under Mr. Obama.
That’s also much more likely if Republicans send tax reform to President Trump to sign. It will be the first time the U.S. economy grew at 3% or higher for 3 consecutive quarters since 2004.