Senate Republicans on Friday passed a sweeping rewrite of the U.S. tax code, clearing the way for the House to take up the measure next week.
The Senate passed the bill Thursday evening after a marathon two-day debate.
The measure would remove a tax break on employer-sponsored health insurance, slash taxes on businesses, and cut taxes for individual income.
But it also would allow states to roll back a number of tax provisions, including a $2,000 tax credit for individuals to purchase health insurance.
Republicans have long touted the benefits of the bill, saying it would help middle-class families.
The vote came as the House began a series of votes aimed at repealing President Donald Trump’s tax overhaul.
The House approved its bill Thursday afternoon by a vote of 419-0.
The legislation would repeal most of Trump’s taxes, including the popular tax break that provides a temporary tax break for people who earn up to $150,000 a year and pay no federal income taxes.
It would also repeal many of the tax breaks for the wealthy.
House Republicans also voted to repeal the tax break President Barack Obama’s health care law and other tax benefits, while still allowing states to use the money to finance Medicaid expansions.
Democrats have long said the bill would hurt middle-income families.
Sen. Bill Cassidy (R-La.) said the tax bill was the best possible outcome.
The tax cuts would be permanent, he said.
But the Senate will not have the power to immediately take up legislation that the House passed Thursday, so the legislation would need to pass the House and then be sent to the Senate.
Republicans could also pass their own version of the legislation, which is likely to include more changes to the tax code than the House bill.
Democrats are expected to oppose the Senate bill as well.
But Republicans have signaled that they will not allow the House legislation to take effect without a bipartisan agreement.
The bill is also expected to face a number on the presidential race.
Republican candidates have accused Trump of stoking the economic woes caused by the tax overhaul by allowing companies to deduct certain expenses for healthcare.
The GOP is also planning to release its own tax bill this week that would lower taxes on the wealthy and give tax breaks to individuals and businesses.