House Republicans Just Passed a Huge Tax Cut for the Rich

The Senate is planning to vote for the bill later on Tuesday.

Bill Clark/Zuma

Let our journalists help you make sense of the noise: Subscribe to the Mother Jones Daily newsletter and get a recap of news that matters.

Republicans in the House passed the biggest reform of the tax code in more than 30 years on Tuesday afternoon. The bill was approved on a party-line vote, 227-203 with every Democrat and 12 Republicans voting against the legislation. The bill now heads to the Senate, where Majority Leader Mitch McConnell (R-Ky.) plans to hold a vote later on Tuesday.

The bill will add $1.5 trillion to the deficit over the next decade, with most of that money going toward tax cuts for corporations and the richest Americans. The bill reduces the top income tax rate from 39.6 percent to 37 percent and cuts the corporate tax rate from 35 percent to 21 percent. Most Americans will receive some form of tax cut in the early years after the bill becomes law, but the biggest benefits go to wealthier Americans. After 2025, the individual tax cuts will expire, at which point, according to the Tax Policy Center, lower-income families would actually face a tax increase compared to current law. The middle class would largely see no benefit, while the wealthy would still come out ahead.

Republicans are also using their tax bill to erode Obamacare. The bill repeals the health law’s individual mandate, which forces people to pay a penalty if they don’t purchase insurance coverage. While the consequences of that rollback aren’t as far-reaching as the full Obamacare repeal bills that Congress considered over the summer, they will likely lead to premium increases and could cause insurance companies to stop offering Obamacare plans in some parts on the country.

This is a breaking news story and will be updated.

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate