US lawmakers reach deal on tax cut bill

US House and Senate Republicans secured a deal on the final version of a tax cut bill, paving the way for the US Congress to pass the bill and handle a major legislative achievement to President Donald Trump before Christmas.

Since the House and Senate passed respective tax cut bills in last month and early December, Republican lawmakers from both chambers have been working hard to reconcile the differences of the two bills.

Congressional Republicans reached the agreement on Wednesday before heading to the White House to have a lunch with President Trump. "I think we've got a pretty good deal," Senate Finance Committee Chairman Orrin Hatch said, Xinhua reported.

The agreement would set the corporate tax rate at 21 per cent, slightly higher than the 20 per cent in both House and Senate bills, but much lower than the current 35 per cent headline rate.

Republicans also agreed to lower the top individual income tax rate from the current 39.6 per cent to 37 per cent, lower than the top rate in both House and Senate bills. Democrats have long been criticizing the tax cut bill for disproportionately favoring big corporations and rich people.

Senate Majority Leaders Mitch McConnell said in a statement Wednesday that the final version would include the repeal of the mandate for individuals to buy insurance, a core part of the 2010 Affordable Care Act.

The repeal of the mandate would raise around 300 billion to fund the tax cuts for corporations and the rich, according to the Congressional Budget Office. The repeal, however, would also kick up to 13 million US citizens off health insurance.

The full details of the agreement will be released later this week, and both chambers of the Congress are set to vote for the bill as early as next Monday.

--IANS

pgh/