House passes tax reform

The House of Representatives in the United States has approved the Bill on Changes in the US Tax Code, bringing Trump's tax reform approach to reality. The legislators adopted the bill with 207 votes in favor and 205 against.

The texts provide for a reduction in corporate tax from 35% to 20% in the following year, a reduction in tax categories from 7 to 4, the abolition of property tax and the transition to a territorial tax system where companies are subject to income tax.

White House spokesman Paul Wien, a Wisconsin Republican, said the bill would lead to "more jobs, higher wages and better household pay".

During the vote, none of the Democrats in the House supported the texts, and 13 Republicans also voted against, because they disagreed with some of the changes.

The bill has to go a few more steps before it enters into force and faces serious immediate challenges, the newspaper said. One of these is the Senate Finance Committee and a Senate vote. The aim is for the tax reform to go through the legislative process by the end of the year.

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

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