House approves final tax plan

UPDATE: WASHINGTON—The House will have to pass the GOP tax plan for a second time following a Tuesday ruling from the Senate parliamentarian. The Senate must vote Tuesday evening to change three provisions in the tax bill to fall in line with procedural rules. The upper chamber is using reconciliation to block a potential filibuster, limiting the legislation’s content. Democrats petitioned the parliamentarian about the three provisions and won. Senate leaders must alter the bill’s title, strip language allowing tax-exempt 529 accounts to be used for private K-12 tuition, and change application of the tax on private university endowments. Under reconciliation, bills cannot contain provisions that don’t affect the budget directly. Both chambers must pass identical bills to reach Trump’s desk. The House will vote again Wednesday morning.

OUR EARLIER REPORT (3 p.m.): The House passed the final version of the GOP tax plan Tuesday, putting Republicans one step away from sending a $1.5 trillion tax cut to the president’s desk. Lawmakers cleared the measure by a 227-203 vote. All Democrats voted against the bill and 12 Republicans joined them. The package now goes to the Senate for approval. A vote could happen as soon as Tuesday evening. “Today, we are giving the people of this country their money back,” House Speaker Paul Ryan, R-Wis., proclaimed. A woman from the public visitors’ gallery then shouted, “You’re lying.” While security escorted her out, she bellowed for Republicans to go back to school to learn math. More than a dozen protesters interrupted Republican speeches minutes before the vote. The massive tax reform package provides lower rates for top earners, lowering the top tax bracket from 39 percent to 37 percent. It also cuts corporate taxes from 35 percent to 21 percent. Republicans argue these changes will boost economic growth and elevate wages. But the bill still remains largely unpopular. A new CNN poll released Tuesday morning found only 27 percent of voters believe the bill will help the middle class. But Ryan dismissed critics during his weekly news conference Tuesday: “Results are going to make this popular.”