House passes final tax bill
The House on Tuesday approved the final version of the GOP’s bill to overhaul the U.S. tax code, bringing Americans ever closer to much needed tax relief. The tax measure passed with a vote of 227-203. All Missouri Republican members voted in favor of the bill and all Missouri Democrat members voted against the bill.
The Senate is expected to pass the bill today, sending it to President Trump’s desk.
The bill lowers the top individual rate from 39.6 percent to 37 percent, reduces the corporate tax rate from 35 percent to 21 percent, and creates a 20-percent deduction for income of pass-through businesses that pay taxes through the individual code.
It increases the exemption amounts for the individual alternative minimum tax and estate tax, and it moves the U.S. to a territorial tax system that generally exempts U.S. companies’ foreign earnings from U.S. taxes.
“This is an historic occasion,” said Ray McCarty, president and CEO of Associated Industries of Missouri. “We look forward to the economic stimulus that will be provided by this significant reduction in tax burden on American businesses and all taxpayers. Some so-called experts are against the bill because the reductions in the individual income tax are temporary. This is a bit disingenuous as it is very unlikely any Congress, including those voting against the bill today, will allow the tax cuts to expire. That would be an act of political suicide. We suspect the root of the opponents’ objections to the bill is there will be less money for the government to spend and more money in the pockets of American workers and job creators. For some, that is a problem. For the rest of us, it is cause for celebration,” he said.