WASHINGTON (AP) — After weeks of quarrels, qualms and then eleventh-hour horse-trading, Republicans revealed the details of their huge national tax rewrite late Friday — along with announcements of support that all but guarantee approval to give President Donald Trump the Christmas legislative triumph he’s been aching for.

The legislation would slash tax rates for big business and lower levies on the richest Americans in a massive $1.5 trillion bill that the GOP plans to muscle through Congress next week before its year-end break. Benefits for most other taxpayers would be smaller.

“This is happening. Tax reform under Republican control of Washington is happening,” House Speaker Paul Ryan of Wisconsin told rank-and-file members in a conference call. “Most critics out there didn’t think it could happen. … And now we’re on the doorstep of something truly historic.”

According to the 1,097-page bill released late Friday, today’s 35 percent rate on corporations would fall to 21 percent, the crown jewel of the measure for many Republicans. Trump and GOP leaders had set 20 percent as their goal, but added a point to free money for other tax cuts that won over wavering lawmakers in final talks.

The legislation represents the first major legislative achievement for the GOP after nearly a full year in control of Congress and the White House. It’s the widest-ranging reshaping of the tax code in three decades and is expected to add to the nation’s $20 trillion debt. The tax cuts are projected to add $1.46 trillion over a decade.

The bill would repeal an important part of President Barack Obama’s Affordable Care Act — the requirement that all Americans have health insurance or face a penalty — as the GOP looks to unravel a law it failed to repeal and replace this past summer.

Only on Friday did Republicans cement the needed support for the overhaul, securing endorsements from wavering senators.

Marco Rubio of Florida relented in his high-profile opposition after negotiators expanded the tax credit that parents can claim for their children. He said he would vote for the measure next week.

Rubio had been holding out for a bigger child credit for low-income families. After he got it, he tweeted that the change was “a solid step toward broader reforms which are both Pro-Growth and Pro-Worker.”

Sen. Bob Corker of Tennessee, the only Republican to vote against the Senate version earlier this month, made the surprise announcement that he would back the legislation. Corker, the chairman of the Senate Foreign Relations Committee, has repeatedly warned that the nation’s growing debt is the most serious threat to national security.

“I realize this is a bet on our country’s enterprising spirit, and that is a bet I am willing to make,” Corker said.

The White House said Trump “looks forward to fulfilling the promise he made to the American people to give them a tax cut by the end of the year.”

The bill embodies a longstanding Republican philosophy that a substantial tax break for businesses will trigger economic growth and job creation for Americans in a trickle-down economy.

Skeptical Democrats are likely to oppose the legislation unanimously.

“Under this bill, the working class, middle class and upper middle class get skewered while the rich and wealthy corporations make out like bandits,” said Senate Minority Leader Chuck Schumer of New York. “It is just the opposite of what America needs, and Republicans will rue the day they pass this.”

The bill would drop today’s 39.6 percent top rate on individuals to 37 percent. The standard deduction — used by around two-thirds of households — would be nearly doubled, to $24,000 for married couples.

The $1,000-per-child tax deduction would grow to $2,000, with up to $1,400 available in IRS refunds for families who owe little or no taxes. Parents would have to provide children’s Social Security numbers to receive the child tax credit, a measure intended to deny the credit to people who are in the U.S. illegally.

Those who itemize would lose some deductions. The deduction that millions use in connection with state and local income, property and sales taxes would be capped at $10,000. That’s especially important to residents of high-tax states such as New York, New Jersey and California. Deductions for medical expenses that lawmakers once considered eliminating would be retained.

The bill would allow homeowners to deduct interest only on the first $750,000 of a new mortgage, down from the current limit of $1 million.

People who inherit fortunes would get a big break. The bill would double the exemption, meaning the estate tax would apply only to the portion of an estate over $22 million for married couples.

Members of a House-Senate conference committee signed the final version of the legislation Friday, sending it to the two chambers for final passage next week. They have been working to blend the different versions passed by the two houses.

Republicans hold a slim 52-48 majority in the Senate, including two ailing senators who have missed votes this past week.

John McCain of Arizona, who is 81, is at a Washington-area military hospital being treated for the side effects of brain cancer treatment, and 80-year-old Thad Cochran of Mississippi had a non-melanoma lesion removed from his nose earlier this week. GOP leaders are hopeful they will be available next week.

(© Copyright 2017 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

Comments (3)
  1. Greg Laden says:

    This bill will be bad for almost every citizen living in Minnesota, and generally, across the country.

    It is a corporate give-away, and a vaguely disguised attempt to gut Obamacare, which has become essential.

    All of the member of congress who vote in favor of this bill will face a serious reckoning come election day.

  2. Clara McIver says:

    Though not listed as a high tax state, Minnesota could be included with “New York, New Jersey and California.” If you’ve been itemizing and deducting SALT (State and Local Taxes) this bill makes major changes.

    Republicans, like my own Rep. Erik Paulsen, have successfully kept Donald Trump’s taxes hidden from us. Candidate Trump promised to release his taxes. But, he broke that promise and upended forty years of tradition. Despite this, we can see the Trump family will benefit greatly from changes in Estate Taxes as well as favoritism toward Real Estate businesses. A number of Senators and Representatives will also, reportedly, benefit themselves or their families with this legislation.

    Finally, let’s look at the latest experiment in trickle-down theory as undertaken by the state of Kansas under Gov. Sam Brownback. The result has been disastrous to that state’s economy. It was so disastrous that eventually Kansas Republicans joined their Democratic colleagues to override the governor and begin to reverse those trickle-down policies. https://www.npr.org/2017/10/25/560040131/as-trump-proposes-tax-cuts-kansas-deals-with-aftermath-of-experiment

  3. John Butala says:

    Yes, let’s stop this evil tax plan to give citizens back more of their money in its tracks. The very idea that average citizens know best how to spend their own money rather than the federal gov. is evil.
    Evil, evil, evil. Thanks to Marxist pols like Chuck Schemer we know that Big Gov. knows best how to spend your income. Give it all to the fed. gov, and let them dole out pittances to the citizens.
    And who needs corporations returning to the U.S. thanks to tax incentives? They’d only create more jobs for people. Those people would get incomes and buy cars and such polluting the environment.
    EVERYBODY WILL DIE!!! ESPECIALLY WOMEN AND CHILDREN!!!
    Ladies and Gentleman, I implore you to stop the evil Republican tax plan now! You don’t need more money…you’d only waste it on yourselves and your family.

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