Sen. Ted CruzRafael (Ted) Edward CruzOn The Money: Conservative blocks disaster relief bill | Trade high on agenda as Trump heads to Japan | Boeing reportedly faces SEC probe over 737 Max | Study finds CEO pay rising twice as fast as worker pay Conservative blocks House passage of disaster relief bill The Hill's Morning Report — After contentious week, Trump heads for Japan MORE (R-Texas) said Wednesday that the only Americans who will see a tax hike under the GOP's sweeping tax overhaul will be the rich in New York City and San Francisco. 

"The only people whose taxes are going up are the really rich. Every taxpayer, their taxes are going down, except rich people in Manhattan and San Francisco, some of them, their taxes may go up," Cruz said on the Senate floor early Wednesday morning.

The GOP plan, which passed the Senate by a 51-48 vote early Wednesday, would roughly double the standard deduction for single filers and married couples. Republicans have characterized their plan as a boon for the middle class. 


High earners in areas with high state and local taxes may not be able to deduct as much under plan, however, and could pay more overall. 

Wealthy Americans would also see a reduction in the top tax bracket, from 39.7 percent to 37 percent, and could benefit from the bill's doubling of exemptions from the estate tax, allowing them to pass on more of their inheritance. 

Cruz authored a controversial provision for home-schooling expenses that was one of two parts of the House bill that the Senate parliamentarian ruled did not meet reconciliation rules for passing budget-related legislation into law with a simple majority vote.