The House is poised to approve legislation that would provide a boost to the economy and provide millions of Americans with a major boost in retirement savings and income, a victory for Democrats and a blow to Republicans who have been pushing to overhaul the tax code in recent years.
The bill passed by the House Tuesday, which would extend a $1,000 tax break to Americans earning up to $200,000 a year, passed by a voice vote after Republicans blocked several provisions.
It is the largest tax-reform bill to pass the House since 1986.
It would raise taxes on a wide range of taxpayers and create a new corporate tax bracket to be paid by corporations and other businesses.
It also extends a $300,000 deduction for mortgage interest payments and allows individuals to deduct their state and local property taxes.
It was a win for Democrats, who have long sought a more progressive tax code and are pushing for a more generous package of tax breaks and tax cuts.
The measure also would provide millions more people with tax relief, including tens of millions of low- and middle-income households who are struggling to get by and who could benefit from a tax cut.
It’s a significant victory for House Democrats, particularly after they were forced to fight a two-year battle to pass a version of their plan after it was blocked by Republican members of the House Freedom Caucus.
The vote came as the House began debating legislation that Democrats say would cut corporate taxes by more than half.
Republicans and some Democrats say it would give companies a massive windfall by allowing them to write off many of the economic costs of a tax increase, while raising revenue for the government by cutting spending.
But Republicans argue the plan would reduce wages, hurt job creators and cause job losses.
Democrats say the plan is intended to give companies tax breaks to avoid paying taxes.
And they say it gives Americans a much-needed break for the $700 billion in revenue they need to pay for social services.