The House of Representatives on Thursday overwhelmingly approved a bill to repeal a popular Obama-era tax on foreign investors, sending it to President Donald Trump’s desk for his signature.
But the bill, which would be a partial repeal of a long-standing tax on corporations, would not apply to individuals who make more than $1 million a year.
It would, however, end a provision in the legislation that allows taxpayers to deduct foreign income taxes paid on overseas profits.
Republicans had been seeking to overhaul the corporate tax code in hopes of increasing revenues and reducing corporate taxes by as much as $3 trillion over 10 years, but the bill faces opposition from the business community, which has argued that it will hurt U.S. companies that compete overseas.
The House also voted to repeal the estate tax, which applies to estates worth more than the value of a person’s home.
The tax has long been a sticking point in the tax-reform debate, but in this case, the tax was widely seen as a major sticking point.
The GOP tax bill would remove many of the estate and gift taxes that many wealthy people pay, including a 15% tax on inheritances over $5.45 million.
The estate tax is paid on estates worth less than $5 million.
The bill also includes a provision that would eliminate a $10,000 threshold for the tax, and the GOP tax plan would eliminate that threshold for individuals.