The House on Thursday approved a $100 billion tax hike for corporations, as well as a major increase in the corporate tax rate.
The tax hike would be among the largest of its kind in U.S. history.
The plan would also allow companies to deduct their profits from their federal taxes.
President Donald Trump has said he supports the plan and is eager to enact it.
But House Democrats, who are seeking to win back control of the House of Representatives, are not yet ready to support the bill.
“This is the largest tax increase in history.
We have to be prepared,” said Rep. Scott Peters (D-Calif.), the top Democrat on the Ways and Means Committee.
“We have to see if we can get the votes in the House, and we are going to get the vote.”
The tax bill would also raise the federal debt limit by $4.2 trillion, according to the Congressional Budget Office.
Democrats have warned that a potential default on the debt ceiling could cause a financial crisis that could result in a downgrade in U,S.
“It’s a bad idea.
I’ve said it for years.
It’s a terrible idea,” said House Minority Leader Nancy Pelosi (D, Calif.).
“I hope that the president and his team understand that it’s not in the interest of this country and our economy to have a default on our debt and the nation to have more debt.”
The bill would create a new corporate tax cut of up to $200 billion over the next decade.
The bill includes a number of other changes, including a phaseout of the deduction for state and local taxes, a reduction in the mortgage interest deduction and a tax credit for college students.
A separate bill would allow workers to deduct up to half of the cost of childcare expenses for up to a family of four.
The House passed the tax plan by a vote of 227 to 188.
The White House has been pressing lawmakers to support a $1.5 trillion tax cut in exchange for extending the debt limit, which has been set at its current level of $16.4 trillion.
The Senate passed the bill on Thursday by a 62 to 34 margin.
The Tax Policy Center, a nonpartisan think tank, estimates that the tax bill could add $5.7 trillion to the federal deficit over 10 years.
A CBO report earlier this month estimated the tax increase would add $1 trillion to inflation.