What you need to know about the Senate tax bill

     Friday night, the Senate finally passed a long-awaited tax bill, that reduces taxes and gives more freedom to small businesses.

What's in it?

As Donald Trump insisted, the tax bill will include a massive tax cut for corporations. The rate will go down from 35% to 20%. This is widely expected to boost the stock market and create more jobs.

Pass-through businesses (those that are not incorporated) are given a larger tax deduction of 20% off their revenue. This as Senators Daines and Johnson said, will give Main Street a bigger boost. Coming from Iowa and Wisconsin, respectively, these senators were insistent that the bill could not exclude small businesses.

Lisa Murkowski, a Republican from Alaska demanded that drilling rights for oil companies be allowed on the Alaska Wildlife Refuge. These demands were met and drilling operations will reduce the price of oil and give more jobs to Alaska.

Other elements include repealing the ObamaCare individual mandate and increasing the Teacher Education deduction to $500. This deduction is for teachers who pay for many class supplies out-of-pocket. In the bill, the United States tax system becomes territorial, meaning that money is only taxed when it arrives in the United States.

Lastly, tax-payers are allowed to deduct $10,000 from property taxes.

How it passed:

After passing the committee vote on Wednesday, floor debate began on Thursday. The bill was widely expected to pass late Thursday night or Friday. The vote was delayed after many senators expressed concern over the budget report, stating that the bill would add $1 trillion to the national debt after economic growth is accounted for.

This caused concern with senators such as Bob Corker and Jeff Flake. After much discussion Friday night, Mitch McConnell, the Senate Majority Leader, convinced Flake to vote for the bill and a vote-a-rama was commenced.

Early Saturday morning, after all the amendments were voted added, the final vote finally came and the tax bill was passed 51-49, with Bob Corker being the only Republican to vote against the measure.

What's next?

Paul Ryan, the Speaker of the House, has begun setting up a conference committee, which will meet with a Senate committee to decide what the final bill will consist of. When McConnell and Ryan finally reach a bill that they are confident will be passed in both houses. If both houses pass the final bill, the President has said he will sign it into effect. Only the Corporate tax reduction will be postponed until 2019 under the Senate bill.

Effects of the bill:

Due to the smaller rates on corporations and small businesses, businesses throughout the country are likely to respond by hiring more workers. Prices are expected to drop and consumer confidence will increase.

In rural states, such as Wisconsin and Iowa, "Main street" will see an economic revival. Smaller businesses will be more prominent in the community.

Gas corporations, such as Exxon Mobil, will begin drilling in the Alaska Wildlife Refuge, resulting in more jobs in Alaska, advocated by Lisa Murkowski, and lower oil prices.

Because of the repeal of the individual mandate of ObamaCare, fewer people are expected to have healthcare.

If the effects of the bill are as positive as they seem on paper, Republicans will most likely see positive election results in 2018. As the majority increases in Congress, they will be able to pass legislation that reflects the party's agenda.