US SENATE APPROVES ITS OVERHAUL OF US TAX SYSTEM




Hassam Hameed-TDO-21.12.2017- Tax bill approval marks the first triumph of President Donald Trump administration since he took over the office a year ago. This overhaul of US tax system is the most sweeping approval by the senate in three decades. This will add $1.5 trillion to national debt which has already leaped pass $20 trillion. Rich are said to have benefited from this overhaul at the expense of poor.

Legislation passed with 51-48 votes. All democrats stood united again the bill. On republicans part they could only have afforded one defactor as Senator John McCain was absent due to his cancer treatment. In house, 12 republicans defacted to democrats but the bill still passed with 227-203 votes. Bill have to be approved again by the House of Representatives because of the last minute hindrance over parliamentary rules.

Tax cuts on corporate decreases to 21% from what was before 35%. Individual income tax-rate would also drop, though it would last temporarily until 2025. Tax policy center estimates that by 2027 the overall change brought by this bill would be negligible with only higher bills as a result for the 53% of taxpayers belonging to lower-income brackets. Other elements included in the bill are lower inheritance tax, expanded child tax credit and authorization for opening drilling in parts of the arctic which was previously protected since 1960, for environmental concerns.