The U.S. Senate passed the GOP-led tax bill early Wednesday morning by a vote of 51 to 48, along party lines.
The House of Representatives is poised to reconsider the bill Wednesday morning. The House approved the bill on Tuesday, but the vote will have to be repeated because of a procedural snag pointed out by Senate rule-makers.
The House vote was 227 to 203, with no Democrats supporting the bill and 12 Republicans opposed.
President Donald Trump is prepared to sign the bill at the earliest opportunity, giving his administration its first major legislative victory after almost 11 months in office.
The bill reduces the corporate tax rate to 21% from 35%. Industries expected to benefit from the bill include automakers, banks and oil and gas producers. Health care companies may suffer because the bill eliminates a mandate under the Affordable Care Act that Americans have to have health insurance or pay a penalty.
The bill will lower taxes for most Americans in 2018, according to the Tax Policy Center. Taxpayers earning less than $25,000 would receive an average tax cut of $60, the center found. Those earning between $49,000 and $86,000 would get an average cut of about $900; those earning between $308,000 and $733,000 would receive an average cut of $13,500; and those earning more than $733,000 would receive an average cut of $51,000.
"Overall, the business community is very pleased with the bill," Neil Bradley, chief policy officer at the U.S. Chamber of Commerce, told The Wall Street Journal.
People in high property-tax states will likely suffer from the bill, which caps deductions for state and local taxes and property taxes at $10,000. That deduction was worth an average of $24,900 to Manhattan residents and $17,000 to those living in Marin County, Calif., across the bay from San Francisco, according to 2014 IRS data compiled by the Tax Foundation and reported by Politico. It also eliminates tax breaks for such things as refinancing municipal bonds, building charter schools, subsidizing bike commutes and rehabilitating old buildings.
The process by which the bill was prepared has drawn criticism from Democrats who were not consulted about its terms. Republicans held no hearings, consulted no expert witnesses and failed to get the measure scored by the Congressional Budget Office. Sen. John McCain of Arizona, who has complained about the lack of regular order in the GOP's process to get the bill passed, is gravely ill with brain cancer and wasn't in Washington for the vote.
That reduced the Republican majority in the Senate to 51-48. Vice President Mike Pence cancelled a trip to the Middle East so he could be in Washington to break a tie vote in the Senate, if needed. But Pence's vote was not necessary and he announced the results of the vote at 12:45 a.m. ET.
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