DENVER (CBS4) – The House of Representatives approved a nearly $1.5 trillion Republican tax overhaul package on Thursday.
It could be the first major legislative accomplishment for President Trump and the GOP since Trump took office.
The House bill collapses the current seven personal income-tax rates into four: 12, 25, 35 and 39.6 percents.
Corporate taxes would be slashed fromm 35 to 20 percent.
The package also gets rid of fines on the Affordable Care Act.
Colorado Congressman Mike Coffman voted in favor of it, while Congresswoman Diana DeGette voted against it.
“It’s a give away for the ultra rich and corporations. And millions of middle class families are actually going to pay higher taxes. I think it’s bad deal for Americans,” said DeGette, a Democrat.
“I think the fact that it does a lot to move this economy forward that’s going to help with wages, help with job creation. I think it’s extraordinary. When I think about the criticisms of it, that it’s a tax cut for rich… I got some calls from rich people that are not happy because their… the top rate stays the same at 39.6,” said Coffman, a Republican.
Projected federal deficits would grow by $1.5 trillion over the coming decade.
Coffman says the bill will spur economic growth that will surely offset the deficit.
House Speaker Paul Ryan said, “Passing this bill is the single biggest thing we can do to grow the economy, to restore opportunity and help those middle income families who are struggling.”
A small group of House Republicans rejected the plan because it would erase tax deductions for state and local income and sales taxes and limit property tax deductions to $10,000.
The Senate is working on its own tax plan.