ANALYSIS: Trump signs tax bill into law

The president gets his first major legislative victory but is it a win for the American people? ABC News' Rick Klein, Tara Palmeri and John Parkinson break down who will benefit most from the new tax bill.
11:49 | 12/22/17

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Transcript for ANALYSIS: Trump signs tax bill into law
Hi everyone ABC news political director picking up from my colleague of reclined picking up my colleague Tommy Thomas over the broadcast network and we are gonna unpack the president's. Decision to sign this legislation right before he heads off on vacation he has now boarded the plane is in route tomorrow log off Florida for the Christmas Holiday Inn through the new year. This will be we believe the last public comments that were gonna hear from the president the United States here in 2017 and they were historic comments and they were. Congratulatory comments a lot of self congratulatory comments I'm joined here by my colleagues at John Parkinson who covers capitol hope for us also top terror Paul Mary was awaiting the president down a Florida Donna I wanna start with you because I know you've done a lot of reporting on this the president. Is first all calling this the largest tax cut in American history that's not true he's also saying. That he signed it specifically because the press was calling about on the timing that's not quite did the situation as we understand it right. And that's right you know I think the key thing on when the president was gonna sign the bill was really when that continuing resolution was gonna get past because what had in there. Was a pay go waiver. Which it impacted the way that the deficit. The ad the additions to the deficit will be counted. Against Republicans so. If this the deficit that has realized from tax reform had been applied. Before. The next session of congress is seated. Then you would have seen. Office of Management and Budget. Apply some automatic cuts across the board for other mandatory spending program to -- 25 billion dollars cut. From Medicare. We're told over a hundred billion dollars in cuts in this first year but I can in this waiver all of that is to late now account until 2019. So the president was waiting for that to see if it would get through the senate and it did last night it's a once this -- came through. It really opened them up to sign the tax bill to. Yeah the president in a giving mood here around Christmas said Tara pulmonary. I you've been covering every step of this White House over the last year here at ABC news and before that at Politico how does this change the narrative of this presidency the president. Very proud of this accomplishment ice talking about it and in historic terms things he's doing things Reagan couldn't do he's. Somehow talk about legislative approvals and even Truman couldn't achieve has this changed the sense of the White House's own sense of itself. Well the president now that's a big actually talk about besides he regulation and he has been able to push their current and kind of executive orders. That unwind what his predecessor President Obama did but he really hasn't had a big legislative accomplishment to speak about but now he has tax reform the question and it's. He was evil is if this bill that actually be popular with the American people and will it translate into a political victory. This is not me and a president come selling his big tax package he's going to be on the road my sources tell me. He's going to be around the country making sure that Americans know that extra money they get in their paycheck is because it's hand. That's it there's a jar because he said specifically that he doesn't even think he's gonna have to sell this bill that's already working beyond his expectations. Saying if you companies that are making investments a phone call he got. From his friend and the patriots Bob Kraft owner that the patriots Bob Kraft saying he would invested it in a new factory. But how are the White House has to be realistic and it has been some reporting on this the last 4448 hours. About what the political prospects are for 28 team they can expect that the tax bill is going to be a panacea. Right in nursing that over confident that he keeps saying he doesn't but now the bill but they're very much aware of and 28 he may need to make sure. The whole country is behind the Republican Party. And that nature bout. Now there's been a lot of goodwill pouring out from the private secretary Scott eighteen T which is hurt. It right now in a legal dispute over a merger with Time Warner and needing to built good well with the app federal government. Offering their employees 1000 dollars in bonus as and obviously it is not just good PR for the company but it helps them when they're trying to get through this tricky period with the Justice Department. You know you have Wells Fargo other major companies saying that they are reinvesting back into their employees and they welcome tax break. Who wouldn't welcome this kind of tax rate from 35%. To 21% that is eight. Huge amount of money that. Corporate they're gonna get back the question is will they bring their company back over. To the United States from overseas I mean I didn't say they are still country that are more competitive and the 21% rate. And they're really gonna have to be dragged back and he's just gonna be a PR campaign where it seems like they're bringing off his back with their more satellite offices. With just one or two employees. That's as a good way it'll take alongside the sort all of that out and John Parkinson I want to turn to some of the other elements of this bill. The president needs a little passing reference to some of the other things that that are ought in this bill. Including the repeal of the obamacare individual mandate he says it's essentially repealing obamacare what's the reality around that what's the expected impact. Of the fact that that's included in this bill. Well yesterday Nancy Pelosi told us that she didn't really agree with that assessment she said that it's gonna do great damage to Obama care but that it's not a full repeal. I think that that's an accurate assessment that it's not a full repeal clearly they're not replacing at this stage that's still a debate that they're gonna kick to next year. But really if you look back. Over the debate during the Obama administration they were talking you know about the individual mandate how critical was to make sure that there was funding for the Obama care. You know cautionary reduction payments and just. Just so that that it it was able to survive and so that it was able to. Be a viable. Piece of policy. So I think that. Having the health care debate largely in 2017 and over despite some calls from some Republicans and now we have tax reform out of the way. You know you talk about infrastructure earlier in the president really does have to look for bipartisan opportunities in the senate. Because now he's not to be able to pass things underneath reconciliation early he's going to be looking for sixty votes he's always gonna need hater and I and Republicans. Or excuse me Democrats to join him. And so I think really looking for an infrastructure that's the low hanging fruit that they're gonna try to tackle first off. And of course it was just all a little more than a week ago that Democrats silence stole essentially senate seat down in Alabama dale. Be cutting the Republican margin to 5149. Going forward and Tara. I want to ask you a little bit looking for in plain off what John was saying about infrastructure the president seemed pretty bullish on the prospects for bipartisanship. In the new year saying he expects that Democrats will work with him on infrastructure that's easy can it by comparison he owes it to the Democrats are already regretting. The fact that he didn't play along on taxes and that this bill was entirely partisan zero Democrats in the of the house or the senate. Voting for it any stage of the legislation Tara. What what what's your what's your take on whether there's the 2018 is gonna bring a fresh wave of bipartisanship to Washington. Well liking president Tran is probably making the right steps to try to turn over and you paint staying. I'm gonna work with for Democrats and thickly infrastructure is very popular Democrat I've spoken with some lawmakers. From new York and New Jersey and they are very interested they have some pet project that they wouldn't mind making making it into that bail and it fattening they have to. Quietly bow in favor of a Republican bill. I could see a lot of them going on with that and so you know true is a Republican and a lot of waste in suddenly he's less traditional and I think in terms of infrastructure and putting money back into our. You know our roads our bridges and our subway that are I train. That's something that a lot of Democrats and vikings Q now the problem is has he Burr solid back goodwill with all of these. Angry please send these fights he comments or can he really real we build those bridges with his you know real estate investor sales. And chat. And tower here not the uniting addressing these pictures right now but Air Force One is taking off on on the screen at that he's heading your way they'll be ready in just a couple hours I had to take that it's not over from the Washington troops do you get a sense that Democrats wish they had been playing along. When it comes to this tax bill. Specifically and I noticed that president Tran did it mention any names so he may be speaking about. General Democrat I he didn't say. Anyone who didn't mention house speaker Nancy hello that and by the House Minority Leader Nancy Pelosi or Chuck Schumer so. It's unclear we talking about this might be his dot again. I know you think you're about to be a popular bell. And it does build the economy wanna say that they had and they do that pathetic and all of those Republicans who took pictures at the White House the president can't rally in the Belichick becomes unpopular I mean a lot of hard disk and sent. Distance themselves from this bill. Antara talk to us about the next couple of days what are we expecting from the White House and moral Lagos this of course is its first Christmas as president the United States he's down there it is it is Florida resort we know that sometimes these. In interacting with other members of the club but we expecting to see him much hear anything from the president over the next week. What we can surely. It it expect that he'll be tweeting of course and he had. He's staying here until after the new year he's got a big New Year's Eve bash on schedule but not really anything much more than golfing and of course president trump always called it a working vacation and I think that's that's something think he'll look like he mentioned that North Korea this morning put out a statement saying that the United States national security has strategy toward their country is criminal. I'm sorry Simmons going to be on the phone today with some of its power report part that he sent his national security team in the U last. You know the world keeps moving even though we celebrate our holiday here in the US senate and the president is still look at that he brought down its staff secretary rob Porter with Kenyon on the plane. And the reason that you stop secretaries if you have the signing documents are building want that person there to be witness to it and that's actually part of the White House protocol so. You can expect some pen to paper over the next diet had her twelve day in. And it's speaking of pens I was struck by the fact that he's handing out these pens to members of the press in this view the pool was in the Oval Office not sure exactly. Who accepted these pens are where it usually via they go around so other lawmakers who were part of the signing process he went out of his way to say that he was. Kind of pressured into signing this is quickly. As he did what's your sense of the presidential mood as he heads off to scenario they a year ending vacation. That he was jubilee and was happy to have something to sign on his staff something that went through congress that how to promote that at the end of the bank. Usually you would find this. Kind of bill surrounded by fellow lawmakers but they all laugh last night as we know they pass there. They're their budget and and they are they're temporary budget and there on their way home severely and have many people let's spend the time went it is interesting to see him passing out and for the Pratt but that's typically what the president done. That after he signed he and the and that to supporting some supporters of the bell he thanked a lot of his staff for their hard work. You know I know that has been their number when agenda. Tax reform is one of the things that president -- really thought with the main priority and even more so important that Health Care Reform talking to aides and lawmakers they all say they heat. Really learned every nitty gritty he of this bill as opposed the health care bill which she just wanted. Six and dealt with by the congress. And you see the difference when he actually commit to the deet tails and and he would obviously celebratory he also made that big promise that he would sign the bill before Christmas as a Christmas present Americans. So there was a bit of a rush. You know a little hesitation could he actually signed it legally and and he was able to do it I'm sure there are still other documents that he thought the sign risk associated with the ballots but I've been pulled from an aide but the main chunk of the bill has been signs that I. And a major legislative achievement for president profits and wraps up the year all right John Parkinson and tower pulmonary thanks for being with us and tower could lock down their covering. The winter White House over the next a week or so that does it for here for ABC news digital on ABC news political director reclined we'll CAPTCHA next time.

This transcript has been automatically generated and may not be 100% accurate.

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