{"articles":[{"id":1372,"title":"What’s In the House GOP Tax Plan","html_content":"

by Causes | 11.2.17

House Republicans unveiled their tax reform legislation on Thursday — the Tax Cuts and Jobs Act — marking the official step in the process of delivering on cornerstone of the Republican Party’s policy platform.

\r\n

While there’s a lot more work to be done in Congress before the legislation becomes law, starting with a planned markup hearing in the House Ways and Means Committee on November 6, after which the Senate Finance Committee will release its own proposal. Here’s a look at what’s in the House bill now:

\r\n

Personal Tax Rates

\r\n

The current seven tax bracket tax code (ranging from 10 percent to 39.6 percent) would be consolidated into five brackets, with the lowest starting at 0 percent to reflect the increased standard deduction that’s $12,000 for individuals and $24,000 for married couples filing jointly:

\r\n

The 0 percent bracket would apply to income up to $12,000 for individuals and $24,000 for married couples filing joint returns.
The 12 percent bracket would apply to income from $12,000 up to $45,000 for individuals, and from $24,000 to $90,000 for married couples filing joint returns.
The 25 percent bracket would begin at $45,000 for individuals and $90,000 for married couples filing joint returns.
The 35 percent bracket would apply to individuals at $200,000 of incomes and $260,000 for married couples filing jointly.
The 39.6 percent bracket would apply to income over $500,000 for individuals and over $1 million for married couples filing joint returns.

\r\n

Personal Tax Credits & Deductions

\r\n

Several tax credits and deductions would be expanded, preserved, or created including:

\r\n

A new Family Credit would be created that includes an expansion of the Child Tax Credit from $1,000 to $1,600 to help parents with the cost of raising children. It would also include a credit of $300 for each parent and non-child dependent to help families with everyday expenses.
The Child and Dependent Care Tax Credit would be preserved to help families care for children and older dependents who need additional support.
The Earned Income Tax Credit would be preserved to provide low-income, working Americans with additional tax relief.
The deduction for charitable contributions would remain in effect.

\r\n

Several tax tax credits and deductions would be modified or eliminated including:

\r\n

The mortgage interest deduction would be preserved for existing mortgages and would remain available for newly purchased homes up to $500,000.
The state and local income tax deduction would be eliminated, while taxpayers could continue to deduct state and local property taxes up to $10,000.
The deduction for medical expenses would be eliminated.
The adoption tax credit would be eliminated.
The student loan interest deduction would be eliminated.

\r\n

Other Personal Tax Provisions

\r\n

The Alternative Minimum Tax (AMT), which taxpayers must pay if their AMT tax liability exceeds their regular income tax liability, would be repealed.
The estate tax (aka the death tax) would be repealed after six years, and in the meantime the exclusion threshold would be increased to $10 million.
The gift tax tax rate would be lowered from 40 percent to 30 percent, with the basic exclusion of $10 million and the annual exclusion of $14,000 remaining at their current levels, indexed for inflation.
No changes would be made to the tax treatment of 401(k) retirement accounts or Individual Retirement Accounts (IRAs).

\r\n

Corporate Tax Provisions

\r\n

The corporate tax rate would be lowered from 35 percent to 20 percent starting in 2018. Personal services corporations would be subject to a flat 25 percent tax rate.
Businesses would be allowed to immediately write off the full cost of new equipment to improve operations and enhance the skills of their workers. They would also be able to continue writing off interest on loans.
The Research & Development Tax Credit would be preserved, as would the low-income housing tax credit that encourages investment in affordable housing.
The international tax system would be modernized so that American companies don’t face double taxation, and earnings could be repatriated at a reduced tax rate.
Incentives that reward companies for shifting jobs, profits, and manufacturing plants overseas would be eliminated.
Tax-exempt organizations like churches, charities, and foundations would have to comply with additional accountability rules.

\r\n

What do you think of the House GOP tax plan? Hit the Take Action button to tell your reps, and share your thoughts in the comments below!

\r\n

— Eric Revell

\r\n

RELATED READING

\r\n

Trump Talks Taxes At Senate GOP Luncheon
The GOP’s EZ Tax Reform Plan
Trump Outlines Tax Policy In Op-Ed

\r\n

(Photo Credit: Gage Skidmore / Creative Commons)

","image_urls":{"large":"https://d15oah1tzzrs2i.cloudfront.net/snack/image/58053/large_58053-1509644570.jpg","medium":"https://d15oah1tzzrs2i.cloudfront.net/snack/image/58053/medium_58053-1509644570.jpg","small":"https://d15oah1tzzrs2i.cloudfront.net/snack/image/58053/small_58053-1509644570.jpg","thumb":"https://d15oah1tzzrs2i.cloudfront.net/snack/image/58053/thumb_58053-1509644570.jpg"},"links":{"self":"https://www.causes.com/articles/1372-s-house-gop-tax-plan","article_comments":"https://www.causes.com/api/articles/1372-s-house-gop-tax-plan/comments"},"comment_count":444,"action_count":1503,"cta_prompt":null,"cta_type":"contact_reps","share_count":113,"published_at":"2017-11-02T17:43:58.225Z","is_countable_article":true,"allow_advocacy":true,"profile_id":1,"signed":false,"signatures_count":null,"signatures_goal":100,"signable_progress":0,"video_url":null,"video_dimensions":null,"video_aspect_ratio":null}],"users":[{"name":"Samantha","vote_count":82,"photos":{"large":"https://graph.facebook.com/10208122403280102/picture?width=150&height=150","small":"https://graph.facebook.com/10208122403280102/picture?width=75&height=75","tiny":"https://graph.facebook.com/10208122403280102/picture?width=20&height=20","facebook":"https://graph.facebook.com/10208122403280102/picture"},"links":{"following":"/api/users/BZeQRdjZ/following","followers":"/api/users/BZeQRdjZ/followers"},"about_me":null,"twitter_id":null,"facebook_id":null,"youtube_id":null,"google_plus_id":null,"website":null,"slug":null,"issue_count":17,"is_following":null,"influence_score":0,"influence_level":0,"follower_count":0,"following_count":5,"position_count":38,"id":"BZeQRdjZ","partner_id":null},{"name":"Sheryl","vote_count":331,"photos":{"large":"https://assets.causes.com/user/avatar/jW2oj1kZ/large_jw2oj1kz-1512710905.jpg","small":"https://assets.causes.com/user/avatar/jW2oj1kZ/small_jw2oj1kz-1512710905.jpg","tiny":"https://assets.causes.com/user/avatar/jW2oj1kZ/tiny_jw2oj1kz-1512710905.jpg","facebook":"https://graph.facebook.com/10155724837084994/picture"},"links":{"following":"/api/users/jW2oj1kZ/following","followers":"/api/users/jW2oj1kZ/followers"},"about_me":"","twitter_id":null,"facebook_id":null,"youtube_id":null,"google_plus_id":null,"website":null,"slug":null,"issue_count":0,"is_following":null,"influence_score":2435,"influence_level":30,"follower_count":37,"following_count":0,"position_count":155,"id":"jW2oj1kZ","partner_id":null}],"article_comment":{"flagged":false,"id":367669,"body":"This is the dumbest tax plan I have ever read. This is only good for the wealthy and throws peanuts at the rest of us","parent_type":"Article","parent_id":1372,"created_at":"2017-11-03T03:19:30.802Z","liked":false,"like_count":1,"links":{"self":"https://www.causes.com/comments/367669","likers":"https://www.causes.com/api/v1/likers?likeable_id=367669&likeable_type=Comment"},"article_id":1372,"shareable_image_url":"https://n.causes.com/share-images/comments/367669.png","note":{},"note_text":false,"note_color":false,"user_id":"BZeQRdjZ","liker_ids":["jW2oj1kZ"]}}

Like Causes?

Comment Liked by 1 User