The House passed a bipartisan tax plan Monday that will slash the corporate tax rate, make it more difficult for companies to deduct business expenses, and allow many taxpayers to deduct their home mortgage interest and property taxes.
The GOP plan is a victory for the insurance companies that helped deliver the Republican health care law and for President Donald Trump, who had campaigned on promising a lower corporate tax to encourage the creation of jobs.
The House vote came after Republicans and Democrats were unable to reach an agreement on a bill that could pass the Senate, but they are trying to avoid a shutdown by continuing negotiations.
Senate Democrats will need to support the tax plan to override a filibuster in the Senate and begin debate.
House Minority Leader Nancy Pelosi, D-Calif., said she believes Democrats will be able to pass a bill.
“We will get to yes,” she said.
“We have been working with President Trump to make sure this tax reform is good for American families and our economy.
I am hopeful that we can come together and pass this bipartisan plan, which will make our tax code even fairer, more competitive and more prosperous for Americans.”
Trump said the plan was “the best tax reform ever” and that he had “the most generous tax plan ever” for companies.
Democrats were hoping to pass their own version of a tax bill, but that plan was shot down by GOP leaders last week.
“It’s been an amazing process.
We’ve worked really hard to get this tax bill done.
We just have to make the best of it,” Rep. Tim Ryan, D/R-Ohio, said Monday.
Republicans have said they would use the budget reconciliation process, a mechanism that allows them to pass bills without Democratic support, to pass the tax bill without Democratic votes.
But a Senate GOP aide said that would require Democratic votes on the bill.
The aide, who spoke on condition of anonymity, said it was still early in the process.
House Speaker Paul Ryan, R-Wis., has said he is committed to bringing down the deficit and increasing revenue.