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House Republicans Pass Tax Reform Bill

WASHINGTON (CBSNewYork/AP) -- The House has passed a sweeping Republican tax bill cutting taxes for corporations and many people.

The House voted 227-205 along party lines to approve the bill, which would bring $1.5 trillion in cuts in the biggest revamp of the U.S. tax system in three decades.

The vote moves President Donald Trump one step closer to his first legislative victory, CBS2's Dick Brennan reported.

"The taxes -- going really well. Thank you very much," the president said.

The vote came after Trump lobbied lawmakers.

"It was really him thanking us in advance, because he knows we're going to get this done," Rep. Chris Collins, R-N.Y., said.

Republicans touted the tax plan and what it means for Americans.

"It has been 31 years since we last did this, and it is finally time that we get the general interests of this country to prevail over the special interests of Washington," said House Speaker Paul Ryan.

"We basically say, 'keep your money in the first place, it's your money, do what you want with it,'" he added. 

Senate Republicans put out their plan which includes repealing the individual mandate from Obamacare.

The House bill would not include the controversial addition, but it does permanently slash the corporate tax rate from 35 percent down to 20 percent. It also doubles the standard deduction for individuals and families, but it eliminates the state and local tax deductions known as SALT, while capping the property tax deduction at $10,000 and cutting the mortgage rate deduction in half.

"We are cutting taxes for middle and low income families," Ryan said. "The typical median household of four gets an $1,182 tax cut. That's big relief for people who think they are one bad news away from a disaster."

White House Press Secretary Sarah Huckabee Sanders said the passage of the bill would give the economy a jolt.

"We will bring back jobs, we will bring back our wealth, and as the president has said many times we will bring back our great American dreams," she said.

Congressmen from some high tax states like New York and California say eliminating the SALT deductions unfairly hurts their constituents.

"It eliminates all of the property tax deductions except for $10,000 which would still hurt many of my constituents," Long Island Congressman Peter King said. "There is no hint of any compromise so based on that I would have to vote no."

"When you propose to eliminate SALT the way it's currently proposed, you are taking more money from a place like New York in order to pay for deeper tax cuts elsewhere," said Long Island Congressman Lee Zeldin. "I'm a New Yorker, we're New Yorkers. I have a problem with that."

House Minority leader Nancy Pelosi, at a rally against the bill Wednesday, insists the changes are aimed at the wealthy, not the poor and middle classes.

"The list of disgraceful cuts goes on and on and why? To give tax breaks to the corporations in America," Pelosi said.

With zero Democrats expected to vote yes in the House, President Trump posted on Twitter, "Why are Democrats fighting massive tax cuts for the middle class and business (jobs)? The reason: Obstruction and Delay!"

Senate Republicans say eliminating the individual mandate would save $330 billion over 10 years that would help offset the increase in the deficit from the tax cuts, but about 13 million people would lose their insurance over the same period.

A vote on the Senate's bill is expected after Thanksgiving.

However, the narrow Republican margin is now one vote thinner, with Sen. Ron Johnson, of Wisconsin, saying he will vote 'no.'

"I wouldn't vote for this Senate version, bottom line. There is a real problem here in terms of the equitable treatment of pass through entities," he said.

Johnson said he's opposed to the current Senate plan because he says it benefits larger corporations more than small businesses.

"The plan before the finance committee fulfills our main goal for tax reform -- taking more money out of Washington's pockets and putting more money into the pockets of the middle class," Senate Majority Leader Mitch McConnell said.

The two chambers would then need to reconcile the bills before sending them off to the president.

Mr. Trump has been pushing a final version to hit his desk by the end of the year.

(© Copyright 2017 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)

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