Trump signed a $1 trillion-plus tax cut bill Thursday that included an increase in the corporate tax rate to 21% from 25%, a tax break for the rich and the elimination of Obamacare’s individual mandate.
The White House called it a “historic tax cut.”
The legislation also eliminates the estate tax, a levy on estates worth more than $5.49 million, and allows families to deduct their state and local income taxes from their federal taxes.
The legislation provides tax relief for individuals and corporations, and eliminates many taxes imposed on individuals and families.
Trump has touted the tax cuts as a way to pay for the spending he wants to implement through a budget he released last month.
The president said Thursday that he wants the tax relief to be permanent, but he said he could end it “at any time.”
Trump said he wants Congress to be able to “end the estate and corporate tax cuts.”
He did not say how he would end the taxes, but a person familiar with his thinking said the tax breaks would expire after five years.
The House is set to vote on the tax bill on Thursday afternoon.
The Senate is expected to vote next week.
The Republican-controlled House will vote next Tuesday on a $2.4 trillion-overhauled version of the tax cut, which is aimed at the middle class and includes a major reduction in the estate-tax rate.
The final version of a $3.1 trillion bill that will pass the House on Thursday would cut the top individual tax rate from 35% to 25%, and the top corporate rate from 39.6% to 20%.
Trump said the House-passed tax plan would “send a strong message to our workers that we’re going to do what’s right for them, not what’s in their best interest.”
The White, House Office of Management and Budget director Mick Mulvaney told reporters Thursday that the administration is not concerned about the effect of the House tax plan on jobs or wages.
“We are going to continue to support the businesses that are going through this tough time, but I can assure you, we will not be a part of a tax bill that impacts the American people,” Mulvany said.
Mulvanny said that the president and his advisers have made it clear they expect Congress to pass legislation to raise the minimum wage to $15 an hour.
The minimum wage was raised from $7.25 an hour to $10.10 an hour last year.
The current minimum wage is $7 an hour, which was raised to $9.50 in 2018.
The federal minimum wage has not been raised since 2010.
House Republicans said they will move on a tax-cut bill once the House votes, but they will hold off on a full tax bill for now until the Senate votes on it.
House Democrats are pushing for a final tax bill this week that could include the $1.9 trillion tax cut.
They want a tax plan that lowers the corporate rate to 25% and lowers the estate value threshold to $5 million from $10 million.
Democrats also want to reduce the number of tax brackets, and to raise taxes on capital gains and dividends.
They are pressing the Trump administration to include language that would extend a provision that would allow businesses to deduct interest payments on debt, including student loans, student loans and mortgages.
The administration has said it will look at ways to extend the provision, which allows businesses to write off interest paid on student loans.
The plan also could include a provision allowing taxpayers to deduct the cost of child care expenses.
Republicans have already been pushing to extend this provision, but the White House has rejected that effort.
Trump signed the bill on the eve of the first anniversary of his election.
Trump, who is expected not to sign the bill this year, has said he would have liked to have seen it pass earlier, but it’s unclear how he will veto it.
The tax cut package also includes a $200 billion boost in military spending, and the end of the nation’s debt ceiling debate that was in place since last year’s debt limit standoff.
It also contains $1 billion in infrastructure spending.
Trump and his allies said the bill would allow the government to spend $1,000 for every $1 it takes in taxes.
Democrats say the bill will be a giveaway to the rich, including a $500 tax cut on savings accounts and a $50 credit for the mortgage interest payments that Trump has been paying on his properties.