President Donald Trump signed a $1 trillion package Wednesday that includes a tax break for families earning up to $750,000, a tax relief for businesses that employ more than 50 people, and tax breaks for veterans and students.
Trump signed the bill on his way to the Capitol after delivering remarks on a bipartisan budget and healthcare package.
But some lawmakers in his own party balked at the sweeping spending deal, saying it doesn’t go far enough to help them and they are disappointed in how it was crafted.
The White House was hoping to move the bill ahead as quickly as possible to avoid a government shutdown.
Trump and Senate Majority Leader Mitch McConnell have been working on the legislation, which is expected to pass the Senate later this month.
The tax break, which was first reported by The Wall Street Journal, would be available for individuals earning between $250,000 and $1 million and for businesses earning more than $250 million.
The bill would also allow taxpayers to deduct mortgage interest and charitable donations, as well as state and local taxes.
Trump also announced the addition of a tax holiday for people earning more money than $500,000 for up to a year.
“These are a small number of families and small businesses,” Trump said of the tax breaks.
“We will not leave the people behind and let them suffer.
We will make America great again.”
Trump also touted the benefits of the legislation by citing the estimated $7 trillion the United States spends on healthcare and said it will create nearly 3 million jobs and reduce the deficit by $3 trillion over 10 years.
The president signed the legislation on the way to signing a bill with his two children, Donald Jr. and Ivanka.
Trump’s signature comes just hours after House Speaker Paul Ryan announced the Republican-led House would begin its first shutdown in 17 years in January 2019.
Trump has said the budget will help the economy and that the tax cuts are a win for the middle class.
The GOP-controlled Congress has been in a partial shutdown since January, forcing Trump to shut down for more than a month in January.
Trump says his administration will provide more information about the tax relief and the budget plan as soon as he is released from a hospital in New York.
Ryan and other Republican leaders had argued that the administration was not providing the information they needed to support their legislation.
But Democrats and a few Republicans have criticized Ryan for pushing the legislation through without any advance notice, and the Senate passed the legislation with a party-line vote.
Democrats have said the package would cost the economy more than 3 million workers.
The Senate passed a bill Wednesday that provides tax relief to more than 300,000 families earning between a $250-million-plus household and $500-million in 2017 and 2018.
The new tax relief, which takes effect Jan. 1, would give taxpayers a $2,500 deduction for their state and federal taxes, as long as the taxpayer makes up the difference between the amount paid in state and state taxes and the tax paid on the interest on the loan.
The Republican-sponsored bill would reduce the federal corporate tax rate from 35 percent to 21 percent for businesses and up to 15 percent for individuals.
It also eliminates the estate tax, a levy that has led to some businesses fleeing the United Nations for the tax haven of Ireland.
Trump said that $2 trillion in tax cuts will create jobs.
“This is a great tax cut,” Trump told reporters as he walked from the Capitol to the White House.
“You’ve heard this, folks.
You know, the Republicans are going to be in the Whitehouse, and they’re going to have a budget, and you’ll be able to talk about this.
You’ll see the tax bill.
We’re going back to our country.
We have to be smart.”
Trump has been trying to score a major victory before a potential shutdown.
The Trump administration is facing a series of lawsuits from unions and other groups over the administration’s plans to withdraw from the Paris climate accord, a move that could cost the U.S. trillions of dollars.
Ryan told reporters the Senate bill would provide relief for the United Auto Workers, but he did not address the lawsuit.
“The American people are the most important reason that this legislation is passing, so it’s important for us to make sure the American people get the full benefit of it,” Ryan said.