>> This is a great day for the country.>> They've passed their massive tax cut package through both chambers of the Congress. Now, Republicans need to combine those bills into one final version before President Trump can sign it into law. I'm Andy Sullivan in Washington where it's looking more and more likely that Republicans will be able to finish their tax overhaul by Christmas.
It's a mixed bag for most Americans. Some would see a modest tax decrease, others would see their taxes actually go up. But Republicans say that it would lead to higher wages and better job opportunities for Americans because of the package's deep tax cuts for businesses. Let's take a closer look.
The bill would slash the corporate tax rate from 35%, one of the highest in the world, down to 20% or perhaps 22% according to Trump. Profits earned over seas would largely be tax free in the future. Republicans say that will encourage companies to invest more in the United States sparking job creation.
But many executives say they plan to use the wind fall to reward shareholders not hire more workers. Other type of businesses would also see a big tax cut into the final rate still needs to be worked out. That could help people such as dentist,lawyers and real estates developers like Donald Trump.
Independent economists agree that a business tax cut would boost the economy though some question whether that's needed at a time when unemployment is at 4%, the economy is growing steadily and corporate profits are all ready high. They warn that any benefit might disappear if the Federal Reserve raises interest rates to keep inflation in check.
Some industries get special treatment. Republican Senators included last minute provisions to help oil and gas companies, cruise ships, car dealers, and mortgage companies. It's not clear at this point if those carve outs will make it into the final bill. Republicans are confident they can get their package signed into law less than two months after they started working on it.
That quick pace has helped them steamroll the opposition but it also means that they spent relatively little time selling it to the American public, or even thinking through their sales pitches. Republican Senator, Chuck Grassley said over the weekend that the bill rewards investors rather than people who spend all their money on, quote, booze, women, or movies.
So, right now, Americans largely don't see this bill as helping them get ahead. Republicans are on the cusp of a major victory, now they need to get voters to see it that way as well.