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The budget reconciliation bill passed the House of Representatives by a one-vote margin, 215 to 214, and soon will be considered by Senate committees. The day before the House vote, the Rules Committee had voted 8-4 along party lines to approve a rule on the One, Big, Beautiful Bill Act, or H.R. 1, after more than 21 hours of debate. The bill, if passed by the Senate in its current form, would renew and make permanent large parts of the Tax Cuts and Jobs Act of 2017 (TCJA), which reduced the corporate tax rate to 21% from a pre-TCJA top rate of 35%. The new legislation would make permanent the 37% top individual income tax rate, abandoning the pre-TCJA top rate of 39.6% that had been in place since 1993, under the Clinton presidency.
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