'Christmas comes early' for the super-rich as US Senate passes historic tax bill

The US Senate has voted in favour of some of the biggest changes to the tax system in more than 30 years.

The House of Representatives passed the tax bill on Tuesday afternoon (19 December) before going on to be approved by the Senate.

After a procedural vote in the House on Wednesday, the bill is expected to be signed by Donald Trump shortly after - for whom the bill will mark his very first major legislative win, almost a year after taking office.

Republicans argue that the changes, which are the largest since Ronald Reagan's 1986 Tax Reform Act, will see tax cuts for small businesses as well as individual in turn boosting economic growth.

But opponents have warned that the reforms could increase the already sizeable deficit and will only benefit the super-rich.

Tax bill highlights:

• Tax cut for corporations from 35% to 21%;
• Smaller inheritance tax;
• Expansions to child tax credits; and
• Lower taxes on profits from overseas.

The non-partisan Joint Committee on Taxation warned that the plans could add $1.4tn to the $20tn national debt over 10 years.

Republican Speaker of the House, Paul Ryan, said: "Today we are giving the people of this country their money back. This is their money after all!"

Taxes for individuals are being temporarily cut for those in all seven of the brackets of income that Americans face, but the most noticeable cuts will be to the super rich.

According to the Tax Policy Center, 5% of taxpayers would pay more in taxes in 2018, 9% in 2025 and 53% in 2027, if the plan is signed into law. However, the 'super-rich' top 0.1% of the 1% would not see any increases.

Reactions online were mixed as the plan will see millions of Americans face an uncertain future for their bottom line.

Peter Daou said: "What do you think of Speaker Ryan's glee over this tax bill that steals from the poor to give to the rich?"

Laurence Summers said: "House passes GOP Tax Bill. Time to start thinking about repeal and replace of a bad, new law."

And Eli Beckman said: "I gotta be honest with you: some days, it's hard not to feel like Donald Trump and the GOP are just making a punching bag out of the American people."