“The biggest in history” said President Trump!
On Wednesday, December 20th, Senate Republicans passed the most extensive rewrite of the United States tax code in more than 30 years, a bill that delivers a deep, permanent tax cut for corporations and shorter-term relief for individuals. President Trump marked the occasion as usual on Twitter, calling the legislation “the biggest in history Tax Cut and Reform Bill”, though experts have said that’s not the case.
The bill cuts the corporate tax rate to 21% from 35%, enhancing the United States position versus other industrialised economies, which have an average corporate tax rate of 22.5%. It also offers temporary tax breaks for other types of businesses and for individuals — including rate cuts that will tend to favour the “richest”. Most middle-class workers will also get short-term relief, but independent analyses show the amounts aren’t large. According to Urban Brookings Tax Policy Centre, the average tax cut for the bottom 80% of earners would be about USD 675 in 2018 while the top 1% of earners would get an average cut of about USD 50,000.