US House passes biggest tax overhaul in 30 years, but last-minute snag forces another vote

Republicans in the US House Congress have hit a last-minute snag in their drive to approve the biggest tax laws rewrite in 30 years, requiring another vote on Wednesday and delaying what would be their first major legislative win under President Donald Trump.

The Republican-controlled Us House of Representatives passed the tax package on Tuesday afternoon (local time), sending the bill to the Senate, where a staff official ruled three provisions of the House bill did not comply with the Senate’s complex rules, independent Senator Bernie Sanders said.

The plan was for the Senate to delete the three offending provisions and vote on the bill.

If approved, which is widely expected, the bill would then be sent back to the House for another vote on Wednesday.

The bill initially passed the US House by a vote of 227-203, overcoming united opposition from Democrats and 12 Republicans who voted against it.

The plan includes steep tax cuts for corporations and wealthy taxpayers, as well as temporary tax cuts for some individuals and families.

It repeals a section of the Obamacare health system and allows oil drilling in Alaska’s Arctic National Wildlife Refuge, just two of many narrow changes added onto the bill to secure its passage.

Middle-income households would see an average tax cut of $US900 ($1,174) next year, while the wealthiest 1 percent of Americans would see an average cut of $US51,000 ($66,500), according to the nonpartisan Tax Policy Centre, a think tank in Washington.

The bill would slash the corporate income tax rate from 35 percent to 21 percent.

Republicans insist the package will boost the economy and job growth.

“We’re delivering a tax code that provides more jobs, fairer taxes and bigger paycheques to Americans across the country,” said Representative Kevin Brady of Texas, Republican chairman of the tax-writing Ways and Means Committee.

“Our local job creators will see the lowest rates in modern history so they can invest more in their workers and in their future.”

Read More