US President Donald Trump has said that he will give the nation “a giant tax cut for Christmas” after Congress reached an agreement on tax legislation that will deliver more jobs, higher wages, and “massive tax relief” for American families and domestic companies.
Republicans are now racing to send him the legislation to sign into law in time for the festivities.
The tax reform will give the typical family of four earning $75,000 annually a tax break of $2,000.
“It’s going to be a lot of money. You’re going to have an extra $2,000. But there are many more things than that,” Trump said.
The full details of the reform will be known next week, when congress votes on the reconciled legislation.
The centrepiece of the legislation will be breaks for the highest-earning Americans, lowering the top individual tax rate from 39.6% to 36%, according to news reports.
The corporate tax rate is slated to come down from the present 35% to 21%, according to reports —higher than the 20% proposed in the Senate and House bills and 15% that Trump had promised as a candidate.
If passed, this will be the Trump administration’s first major legislative victory after it failed to repeal and replace Obamacare.
{{/usCountry}}If passed, this will be the Trump administration’s first major legislative victory after it failed to repeal and replace Obamacare.
{{/usCountry}}Tax reforms is a major poll promise for the president, which he pointed to in his remarks: “As a candidate, I promised we would pass a massive tax cut for the everyday, working American families who are the backbone and the heartbeat of our country.”
And now, he is waiting to deliver, in time for Christmas.