Early Saturday morning, the United States Senate passed the most sweeping tax reform in decades, which will bring a significant tax cut to both the working class and big business.
The vote was close – 51 to 49 – with only one Republican voting against the GOP-sponsored bill.
The U.S. Senate voted just before 2 a.m. ET Saturday to pass a sweeping tax overhaul worth roughly $1.4 trillion, putting the Trump White House a big step closer to its first major legislative victory – and many Americans closer to a tax cut.
The vote was 51-49, with Republican Bob Corker of Tennessee the only member of the GOP to side with the Democrats in opposition.
The bill is still not yet finalized. Saturday’s vote means the Senate and House have passed similar tax reform plans, but negotiators from both chambers will start meeting Monday to agree on a single piece of legislation that both chambers must approve before it is sent to President Donald Trump for his signature.
Here’s how the latest legislation would affect you:
What deductions can I claim under the Senate bill that just passed?
The Senate bill does away with federal deductions for state and local income and sales taxes, but allows deductions of up to $10,000 in local property taxes. The legislation originally eliminated federal deduction for all state and local taxes, but the property tax exemption was later added at the insistence of Sen. Susan Collins, R-Maine, who said she was “delighted” about the change.
What about personal deductions?
Like the House bill, the Senate bill nearly doubles the standard deduction level to $12,000 for individuals (up from $6,350) and $24,000 for couples (up from $12,700).