US Senate Passes Tax Reforms Bill. Is the Bill Really Helpful to Boost the Economic Growth of US?

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United Senate passes new Tax Reform Bill on 21st December 2017. The Senate approved the $1.5 trillion Tax Bill which sets permanent Tax breaks for corporations and temporary tax cuts for individual by a final vote of 51-48.

The tax cut for the individual would expire in 2026.

The Republicans senate passed a comprehensive overhaul of the US Tax Code in more than 30 years. The new Bill will bring the drastic changes to Country’s Tax Code since 1986.

The Bill has reduced the corporate tax rate from 35 per cent to 21 per cent, while individual tax has been reduced only up to 2-3%. The Bill gives a 20 per cent deductions on business income.

The Bill contains provision for $1.5 trillion tax deduction.

The senate has approved the Bill comfortably and in the House it was passed by 227-203 votes.

The Tax Bill may boost the earnings of US Banks because it will help them to compete their rivals who had lower tax plans

US President Donald Trump said that the new tax Bill would unleash a new economic development in the country as corporations are flushed with cash which lead to increase in wages and hire more workers.

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