Early on Saturday morning, Mr. Pence provided a tiebreaking vote to pass an amendment offered by Senator Ted Cruz, Republican of Texas, that would allow people to use up to $10,000 a year from tax-advantaged 529 savings accounts to fund tuition at private and religious K-12 schools or certain educational expenses for home-schooled students. Right now, such accounts can only be used to pay for higher education.
The bill’s approval, coming on the heels of the House passing its own tax bill last month, is the first significant legislative victory for the Republican Party since it assumed control of the House, Senate and White House in 2017. The lightning-fast trajectory of the bill and the ability to overcome — or ignore — objections that have bedeviled previous attempts to revamp the tax code, highlights the pressure Republican leaders faced to notch a victory after several failed legislative efforts this year.
Mitch McConnell, the Senate majority leader and Kentucky Republican, called it “a great day for the country.”
House Speaker Paul D. Ryan, Republican of Wisconsin, said in a statement that with Senate approval “we will move quickly to a conference committee so we can get a final bill to President Trump’s desk.”
Republicans have pitched the bill as a middle-class tax cut and the overhaul is intended to immediately cut taxes for about 70 percent of middle-class families. But it would raise them on millions of others, since the Senate plan eliminates some tax breaks like the deduction for state and local income taxes and phases out the individual tax cuts at the end of 2025.
Businesses fare far better, with the corporate tax rate cut to 20 percent from 35 percent and made permanent. It also offers a large tax break for the owners of small businesses and other companies that are not organized as traditional corporations, a provision that was sweetened in a last-minute deal to bring two wavering senators on board.