The United States will vote on the final royalty reform bill, which is the largest tax reform action in 30 years

The United States will vote on the final royalty reform bill, which is the largest tax reform action in 30 years. China News Service, December 17 (Xinhua) According to foreign media reports, recently, the U.S. Republican Party announced a tax...

China News Service, December 17 (Xinhua) According to foreign media reports, the U.S. Republican Party recently announced the final version of the tax reform bill, which reduces corporate tax and personal income tax to a smaller extent than in the previous version.

According to reports, the tax reform bill is scheduled to be voted on by the House and Senate early next week. If passed successfully, it will be the largest tax reform action in the United States in 30 years and the first bill passed since Trump took office in January this year.

According to this final version of the tax reform bill, the corporate tax will be reduced from the existing 35% to 21%. The U.S. business community has been lobbying for years, hoping that the government will cut tax rates.

As for the personal income tax, the seven levels will be retained, but the top tax rate for each level will be lowered. The top tax rate for wealthy individuals will be reduced by 2.6 percentage points to 37%. All tax reform measures will be implemented from the year of assessment 2018.

Republican members of the U.S. House and Senate previously agreed on the final version of the tax cut bill. President Trump said at the White House that the IRS recommended that if Congress can vote and send the bill to him for signature before Christmas, the new tax law can be implemented starting in February next year.

The U.S. House of Representatives is scheduled to vote on the tax reform bill next week. Since there are many Republican members of the House of Representatives, passing it should not be a problem. After the House passes the bill, it goes to the Senate for a vote. The bill passed both houses of Congress before being handed over to Trump to sign into law.

Reports pointed out that whether the bill can be passed is of great significance to Trump, because he has not been able to push any bill through Congress since he took office. Two Republican senators, Rubio and Corker, who had originally stated that they did not support the tax reform plan, changed their minds and agreed to vote in favor, which improved the chances of Congress passing the bill.

> Rubio said that the bill was revised to increase subsidies for raising children, so he decided to support tax reform. Corker was originally worried that the tax reform would increase the fiscal deficit. After the bill was revised, he said that although the final version was still "not ideal," he did not want to waste a good opportunity to help the American business community, so he decided to change his original intention.

However, the Republican Party has 52 senators in the 100-seat Senate, with only a slight advantage, while the Democratic Party has 48 senators. There are still three Republican senators who have not pledged their support, so the prospects of this bill are still uncertain.

If this tax reform plan is implemented, it will further increase the debt burden of the United States in the future. The U.S. national debt has reached US$20 trillion (approximately S$27 trillion), and it is estimated that it will increase by US$1.5 trillion in 10 years after tax reform.

On the other hand, American Democrats have been severely criticizing the tax reform bill as only benefiting the rich. Senator Sanders, who ran for the Democratic presidential nomination last year but lost to former Secretary of State Hillary Clinton, said the tax reform bill highlighted the "moral corruption and economic filth" of the United States.

Sanders said: "This is a gift to wealthy donors to the Republican campaign and an insult to working-class families in our country."

However, U.S. Republicans pointed out that because the U.S. economy is not expanding fast enough, tax cuts are necessary to stimulate the economy.

U.S. House of Representatives Republican Leader McCarthy said: "The American people now have this plan within their reach. It will bring higher wages, lower taxes, simpler systems, and a stronger American economy."