On December 2, the Senate passed the Senate version of Republican tax reform 51-49, paving the way for Donald Trump's first major legislative victory, marking the largest since the 1980s A tax reform. The next step is to reconcile the Senate version with the version of the House previously passed and submit it to Congress. It is learned that except Republican Senator Bob Corker voted against the vote, the remaining 51 senators voted in favor.
Trump hopes to sign the final version of the tax reform bill before Christmas
As a result, Republicans got much-needed policy results for the party and President Trump. Trump excited for this release Tweets said he looked forward to signing the final version of the tax reform bill before Christmas. But before Trump turns up, lawmakers must also resolve the differences between the Senate bill and the version passed last month by the House of Representatives, which may start on Monday (December 4).
Public consultation Senate and House tax reform version still need to coordinate
The bills in both the House and Senate will cut the corporate tax rate from 35% to 20%, but the Senate version cuts for 2019, a year behind the House bill. In addition, the Senate bill will only provide a temporary personal tax relief, which will end the tax relief in 2026. Both of these bills predict that the federal deficit will increase by more than 1.4 trillion U.S. dollars over the next ten years.
On November 17, the votes of the U.S. House of Representatives, 227-205, passed its version of the tax reform bill and took the first step towards historic reform. Thirteen Republican lawmakers voted against the vote.
Democrats warn that Republicans will pay the price for the midterm elections next year
Several changes were made to the final draft of the tax and employment bill Friday to include Republicans who disagree. Democrats were furious over the last minute of such changes, complaining that they did not get enough time to digest the nearly 500-page document that contained handwritten changes.
After the vote, Senate Democrat leader Schumer said Republicans will pay the price for voting next year. He warned that Republicans will no longer be parties to the tax cuts for the middle class, and that such measures will jeopardize social security and health care.
The dollar is expected to usher in a wave of rally
This week's dazzling economic data, as well as the position of the next chairman of the Federal Reserve Powell, posed a positive stimulus to the dollar. The Senate added another impetus to the dollar by tax reform.
Tax reform may not reverse the weakness of the dollar next year
However, according to the latest estimates, the tax relief measures of the tax reform bill may bring a deficit of 1.4 trillion U.S. dollars to the United States, which is also the focus of previous stalemate. The Commercial Bank of Canada believes that the tax reform next year is unlikely to dominate the exchange rate movements. As the United States and other countries and regions have tightened monetary policy one after another, and the U.S. current account deficit is huge, the tax reform bill is unlikely to reverse the weakness of the U.S. dollar next year.