After several days of debate, the Republican majority of the Senate finally passed the tax reduction bill with 51 votes in favor and 49 votes. All Democratic senators and a Republican senator voted against.

Mcconnell, the majority leader of the Senate, said after the vote that the Tax Reduction Act provided an opportunity to enhance the competitiveness of the US economy, prevent jobs from losing overseas and burden the middle class. But the Democratic Party criticizes the tax cut bill to benefit big American companies and the rich.

According to the previous analysis of the joint Tax Committee of the two houses, even considering the effect of stimulating the economic growth, the tax reduction bill will lead to an increase in the deficit of about 1 trillion dollars in the next ten years in the US.

The US House of Representatives passed a large tax cut bill last month, but there is a big difference from the Senate version. In terms of corporate income tax, although both houses agreed to reduce the federal corporate income tax rate from the current 35% to 20%, the Senate version of the tax reduction came into effect in 2019, a year later than the version of the house of Representatives.

In the personal income tax, the House version will be federal individual income tax simplification from 7 level to 4, the highest federal personal income tax rate unchanged at 39.6%; the Senate version still maintain the federal personal income tax rate of 7 stalls, but the highest federal personal income tax rate to 38.5%. In addition, the Senate version added to the abolition of Obama's medical reform requirements for compulsory purchase of personal health care.

According to the US legislative process, the two chambers of the house of representatives will negotiate on two versions of the tax cuts in the coming weeks. After reaching the final unified version, they will be sent to the house of Representatives respectively. The top Republican of the U.S. Congress hopes to complete the tax reform legislation by Christmas.