President Donald Trump is still focused on getting one of his core promises to become a reality. His commitments as the President of the United States concern an overhaul for the tax system in his country that he has to deliver this term. Even though a tax reform proposal was issued in September, it was only this week that the Republicans made a major step toward this goal.
Members of the Republican Party Still Have to Shake Hands on a Tax Cut Bill by January 1st, 2018
On Thursday, the tax revamp gained momentum with a Senate bill. The legislative body approved a budget measure that will enable Republicans to introduce a tax-cut bundle without Democratic votes. Republican U.S. Senator Rand Paul has even voiced out his support for considerable tax cuts.
The only missing puzzle piece is a bill. They took upon themselves the deadline of January 1st, 2018 for deciding a tax-cut package that would satisfy all Republicans. On the other hand, the members of the party are far from agreeing on the right system that exempts certain taxes and covers the budget gap.
The pressure for this project amounts even more when they failed to replace Obama’s signature healthcare bill. World markets took the Thursday advancement as a sign that Trump is closer to deliver his fiscal promises. Therefore, bond yields started increasing on Friday while stock prices rose. In the end, the U.S. dollar gained new boosts.
Washington Has Been Pursing a Tax Reform since 1986
The budget proposal that gained Senate’s support on Thursday will need two weeks to meet half way a different version of itself. This second paper was passed by the House. It consists of a revenue-neutral tax bill. The literature claims to support different programs such as food aid for the poor based on tax cuts and $203 billion in spending cuts.
On the other hand, the Senate hasn’t worked on a clear direction for spending cuts. The only reference regards the Energy and Natural Resources Committee to save $1 billion in the following ten years.
The United States has been trying to solve hurdles with the tax code since 1986. The current tax reform proposal was met with doubt by those Republican senators who frown upon proposed cuts for the wealthiest taxpayers in America.
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