President Donald Trump signed a massive $1.5 trillion overhaul of the country’s tax code into law Friday, putting a seal on his first major legislative victory.
"This is something I'm very proud of -- great for our country, great for the American people," Trump said in the Oval Office as he signed the bill into law.
It permanently slashes the corporate tax rate from 35 percent to 21 percent. It also maintains the current number of tax brackets, lowering the rate for many of the seven tax groups. Unlike the corporate cuts, however, the dips to individual rates are expected to expire by the end of 2025 if Congress does not renew them.
Reiterating former President Ronald Reagan-era economic policy, Republicans are banking on the massive corporate tax cut boosting jobs, increasing wages and driving foreign investment. But some surveys of business leaders indicate corporations will use the money for stock buybacks and passing on profits to shareholders.
The stock market has gained about 5,000 points since Trump assumed office, largely on hopes he would be able to deliver on the promised tax overhaul.
The bill also takes the largest swipe at former President Barack Obama's landmark healthcare reform effort, removing the Affordable Care Act's penalty for individuals who fail to purchase insurance.
Trump called the individual mandate "a very unfair, and very unpopular provision, as you know, in Obamacare.
"Essentially I think Obamacare is over because of that," he said. "We're going to come up with something that is really going to be very good," he said without elaborating on what that could be.
In addition to the tax bill, Trump signed a short-term spending bill that includes more than $4.6 billion for missile defense, averting a government shutdown.
It also includes $2.85 billion for the popular Children's Health Insurance Program and $750 million for diabetes programs and community health centers.
The bill will fund the government through Jan. 19, giving lawmakers much-needed time to tackle a bevy of divisive policy issues.