NEW YORK — President Donald Trump and Republican congressional leaders agreed Tuesday to raise the country’s tax burden by nearly $5 trillion, raising the specter of a tax hike as the House passed its first-ever $5,000-per-worker tax cut.
The legislation passed by a vote of 419-1 with most Democrats opposed and Democrats saying they did not want a large tax hike.
It is expected to add $1.8 trillion to the national debt over 10 years, and Trump promised to raise it to $5trillion if elected.
The tax cut is expected in the $10 trillion range, but the president’s campaign has not released estimates.
The House of Representatives approved the bill Tuesday morning and the Senate is expected on Wednesday to pass it.
Republicans are pushing for an immediate $1 trillion tax increase, but Democrats say it would be too costly and would hit people at a lower rate.
Democrats said that even though the tax bill included tax breaks for small businesses, there is still not enough money for them to offset the economic pain the tax cut would cause.
Republicans are also pushing for a $500 billion infrastructure investment, a $1,000 minimum wage hike and other proposals.
The tax increase was an economic boon to Trump, whose approval ratings have fallen to a historic low and who has promised to cut taxes.
The bill would increase the standard deduction to $10,000 for couples, and that would bring the average tax burden for people to $1-trillion for individuals and $7,200 for families.
The bill also reduces the estate tax to $2.5 million from $5 million, eliminates the alternative minimum tax, and lowers the estate threshold for estates to $6.5 billion from $8.6 billion.
“We’re going to pay our fair share of taxes, and we’re going do it in a way that’s fair to everybody,” Trump said in an interview with Fox News.
“It will be very, very fair.
It will be just a very, much lower rate for everybody.
I think that’s going to be a really great thing.”
The tax bill is not a guarantee that Congress will pass it as is, but it is expected that the House and Senate will pass the tax-cut legislation in the next few days, and there is a chance that they will not.
The president’s push for tax relief for small business owners is expected soon, and he is expected by the end of the year to unveil his plan.