In the early morning hours Wednesday, the Senate passed its sweeping tax overhaul bill, which will become the Republican’s first major legislative victory since President Donald Trump took office.
The vote, which took place around 2:30 a.m. ET, passed the bill with all Republicans voting for it and all Democrats voting against it.
Tuesday, House Republicans passed the same bill, however due to three provisions Democrats say were violated in the Republican's bill, the House will be forced to vote again Wednesday after the provisions are removed.
Trump is expected to hold a press conference Wednesday after the House re-passes the bill. He will sign the bill into law by Christmas.
.@POTUS Trump’s tax cut plan is designed to benefit hardworking American families, like this young man's. We promised tax reform by Christmas & today we will deliver! #MAGA pic.twitter.com/CRgYCNX7Ba
— Vice President Mike Pence (@VP) December 19, 2017
Unlike previous versions of the bill, this final version cuts the mortgage interest deduction to $750,000, down from the current $1 million, but up from the House’s proposed cut to $500,000.
The housing industry is more on board with this latest version of the bill, some even saying that they give it their full support.
One selling point of the final version is that it kept the capital gains provision intact. This provision allows married couples filing their taxes jointly to exclude up to $500,000 in capital gains on the sale of a home, as long as they have used it as a primary residence for at least two of the last five years, while an individual can exclude up to $250,000.
The House and Senate each proposed to make this rule more strict, however neither provision made it through the final committee, and the rule will remain the same.
For a detailed analysis of the final bill’s changes to the current tax system, such as an increase to the standard deduction or the slashing of the corporate tax rate, click here.
