The Senate bill passed early Saturday after last-minute changes were made to the legislation to win the support of almost every Republican. Not a single Democrat voted in favor of the legislation, which was crafted behind closed doors by Senate Republican leaders. The current Senate bill completely eliminates the federal deduction for state and local taxes, a popular deduction in the Democratic-leaning states of New York, New Jersey, California and IL as well as many wealthy suburbs nationwide.
There would also be lower taxes on companies with owners that pay individual tax rates on profits, and a more gradual elimination of tax breaks for firms buying equipment.
The tax overhaul is seen by Mr Trump and Republicans as crucial to their prospects at mid-term elections in November 2018, when they will have to defend their majorities in Congress.
Republicans failed in their efforts to repeal the Obamacare healthcare law over the summer and Mr Trump's presidency has been hit by White House in-fighting and by a federal investigation into possible collusion previous year between his election campaign team and Russian officials.
The House bill, meanwhile, would tax the value of tuition waivers for graduate students employed as teaching and research assistants, dramatically hiking taxes on a modestly compensated workforce. In all, the cuts total a little less than $1.5 trillion in revenue over 10 years. No Democrat voted yes.
Another critical swing vote, GOP Sen.
Senate Majority Leader Mitch McConnell, R-Ky., flanked by, Small Business Administration Administrator Linda McMahon, left, and Sen. "We've still got a chance to do something good, and I'm going to try and do it".
Those groups said provisions that would prevent federal filers from deducting state and local taxes, and eventual tax hikes on middle-class families if the sunset cuts are not extended would cause property values to drop by 10 percent and eliminate an incentive for homebuyers.
Other issues under discussion included if the 20 percent corporate tax rate might be raised, the extent of the child-tax credit, and the tax rate for small businesses. "We have done it and we're ready to go", she said. Ron Johnson (R-Wis.) and Steve Daines (R-Mont.) secured changes in the last 24 hours to a business deduction that would cost approximately $60 billion over the next decade, according to Daines. But his vote probably won't matter: Even without Corker, Republicans appear to have the votes they need to pass the bill anyway. Lawmakers will have to work out agreements on the estate tax, which the House bill repeals but the Senate bill merely reduces, and differences on provisions governing "pass-through" businesses that pay individual instead of corporate taxes.
"A vote to cut taxes is a vote to put America first", Trump said.