House Republicans unveiled a draft tax bill on Thursday, calling for deep cuts in both individual and corporate tax rates.
“With this bill, we will grow our economy by delivering more jobs, fairer taxes, and bigger paychecks to Americans of all walks of life,” said Rep. Kevin Brady, R-Texas, chairman of the House Ways and Means Committee.
The rollout, originally scheduled for Wednesday, was postponed to give bill drafters more time. They’re still struggling to find sufficient revenue to avoid a budget-busting score. As a result, some of the tax changes have been made temporary or phased in over time.
Here are some of the highlights of the bill:
- Four individual tax brackets would be introduced at 12 percent, 25 percent, 35 percent, with the top rate of 39.6 percent remaining in place for the very wealthy.
- Corporate taxes would drop from 35 percent to 20 percent permanently.
- Standard deduction increases from $6,350 to $12,000 for individuals and $12,700 to $24,000 for married couples.
- Child tax credit would expand from $1,000 to $1,600.
- Federal deductions for state and local income and sales taxes to be eliminated, but local property taxes can be deducted up to $10,000.
- No changes to limits on 401(k) pre-tax contributions.
- Alternative Minimum Tax to be repealed.
- Estate tax would kick in at $11.2 million, up from $5.49 million, but it would be fully repealed as of 2024.
- Corporate profits from overseas would no longer be taxed, but there would be a minimum 10 percent tax on foreign subsidiaries.
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