President Donald Trump took to Twitter on Tuesday to assure Americans that the GOP-led tax reform legislation will succeed in cutting taxes and reforming the broken tax system.
Trump linked Monday’s stock market gains to the upcoming votes on the tax bill, noting that implementation of the Tax Cuts and Jobs Act — which he called the “Biggest Tax Cuts and Reform EVER passed — will help the markets do even better.
“DOW RISES 5000 POINTS ON THE YEAR FOR THE FIRST TIME EVER – MAKE AMERICA GREAT AGAIN!” Trump tweeted early Tuesday morning.
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The Dow Jones Industrial Average rose 140 points on Monday to close at just under 24,800. The index has risen over 5,000 points since the start of 2017, the biggest annual gain in its history, according to CNBC.
Once the historic tax reform legislation is passed, the president thinks the stock and job market will see even more gains.
“Stocks and the economy have a long way to go after the Tax Cut Bill is totally understood and appreciated in scope and size,” he tweeted.
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“Immediate expensing will have a big impact. Biggest Tax Cuts and Reform EVER passed. Enjoy, and create many beautiful JOBS!”
White House press secretary Sarah Huckabee Sanders echoed the president’s praise for the legislation during a Tuesday appearance on “Fox & Friends.”
“It’s a huge deal, but not just for the White House. It’s a huge deal for America,” Sanders said, particularly emphasizing the effect the tax overhaul will have on middle-class Americans.
“The fact that we have been pushing this tax cut package, this tax reform package – you’re really seeing that reflecting in our economy — our booming economy. Optimism is up,” she added.
The Tax Cuts and Jobs Act is a sweeping reform of the U.S. tax code, calling for slashes in rates for the majority of Americans and a simplifying of the system.
The bill will deliver $1.5 trillion in tax cuts over a span of ten years, cut the corporate rate to from 35 percent to 21 percent and lower individual tax rates.
Multinational companies would also see a completely revamped tax system — including a one-time tax on foreign profits that have been earned, but kept overseas to avoid U.S. taxes, according to The Wall Street Journal.
Notably, the bill repeals the individual mandate to purchase health care, an unpopular provision in Obamacare that requires every American to purchase health insurance or else pay a fine.
The House of Representatives is voting on the tax bill Tuesday. Republicans can only afford to lose 22 votes and still have the legislation pass in the lower chamber, Fox News reported.
However, 12 Republican congressmen who opposed against the bill that passed in the House last month announced they would vote in favor the new version.
These members, most of whom are from high-tax states, are supporting the bill despite the fact that a $10,000 cap on state and local property taxes is still in the final House version of the legislation.
If the House can pass the bill, the Senate is expected to act on the legislation later in the evening, according to Senate Majority Leader Mitch McConnell.
With a razor-thin 52-48 majority in the upper chamber, Senate Republicans need the vast majority of their caucus to support the bill. If there is a 50-50 tie, Vice President Mike Pence — who has postponed a scheduled trip to the Middle East — can cast the deciding vote.
With Arizona Sen. Jeff Flake still a question mark, Senate Republicans appear to be in a precarious position, especially considering that fellow Arizona Sen. John McCain will be at home recovering from the side effects of chemo treatment while the vote takes place.
However, GOP Sens. Susan Collins of Maine, Marco Rubio of Florida and Bob cCrker of Tennessee — all of whom have expressed reservations with the legislation — will support the overhaul.
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