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(Updated 12/16/17): This bill — known as the Tax Cuts and Jobs Act — would overhaul the tax code with the goal of reducing the tax burden on individuals and businesses. It would lower tax rates, double the standard deduction and increase the child tax credit, eliminate or cap certain deductions, and also reduce the corporate tax rate. The bill was amended from its original form by the Senate, which replaced the House-passed version in its entirety and made further amendments to it during floor debate before approving it. This summary currently reflects the final version of the bill reported by the conference committee.

Personal Tax Rates

The current seven tax bracket tax code (ranging from 10 percent to 39.6 percent) would be revised, with all but two of those brackets being reduced slightly. The cuts would be temporary under the bill, sunsetting after 10 years unless they’re extended by Congress. Here's a look at the brackets (taxable income ranges for each bracket in parentheses):

The 10% bracket would remain (up to $9,525 for individuals; $19,050 for joint filers).
The current 15% bracket would be cut to 12% ($9,525 - $38,700 for individuals; $19,050 - $77,400 for joint filers).
The current 25% bracket would be cut to 22% ($38,700 - $82,500 for individuals; $77,400 - $165,000 for joint filers).
The current 28% bracket would be cut to 24% ($82,500 - $157,500 for individuals; $165,000 - $315,000 for joint filers).
The current 33% bracket would be cut to 32% ($157,500 - $200,000 for individuals; $315,000 - $400,000 for joint filers).
The 35% bracket would remain ($200,000 - $500,000 for individuals; $400,000 - $600,000 for joint filers).
The 39.6% bracket would be cut to 37% ($500,000+ for individuals; $600,000+ for joint filers).

Personal Tax Credits and Deductions

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

The standard deduction would be doubled to $12,000 for individuals and $24,000 for married couples filing jointly -- up from $6,350 and $12,700 under current law.
The individual mandate to buy health insurance imposed by Obamacare would be repealed effective in 2019.
The Child Tax Credit would be doubled from $1,000 to $2,000 to help parents with the cost of raising children. It would be fully refundable up to $1,400 and phases-out for families making over $400,000. Parents have to provide a child's valid Social Security Number in order to receive the credit.
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.
The adoption tax credit would remain in effect.
The electric vehicle tax credit would remain in effect.

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

The mortgage interest deduction would be unchanged for all homeowners with existing mortgages, and for new mortgages the deduction would be available up to $750,000.
The Alternative Minimum Tax (AMT), which taxpayers must pay if their AMT tax liability exceeds their regular income tax liability, would remain in effect but the exemption amounts would be increased, while its thresholds would be phased out.
The deduction for state and local taxes (SALT) would be capped at $10,000 and taxpayers could choose from sales, income, and property taxes to count toward the deduction.
The deduction for medical expenses would be available for medical expenses exceeding 7.5 percent of adjusted gross income in 2018 and 2019, which would rise to 10 percent beginning in 2020.
The personal exemption would be eliminated.
The $3,000 tax deduction for living expenses like meals and lodging incurred by members of Congress while away from their home would be repealed. (This provision was also introduced as a standalone bill, the SQUEAL Act.)

Other Personal Tax Provisions

The exclusion threshold for the estate tax (aka the death tax) would be increased to $11 million for individuals and $22 million for married couples.
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).
Individuals would be able to rollover funds in a 529 savings plan to ABLE accounts, which are tax-advantaged for individuals with disabilities and their families.
The $3,000 tax deduction for living expenses like meals and lodging incurred by members of Congress while away from their home would be repealed. (This provision was also introduced as a standalone bill, the SQUEAL Act.)
Graduate students would continue to be able to exempt the value of reduced tuition from their tax liability.
The student loan interest deduction would remain in place.

Corporate Tax Provisions

The corporate tax rate would be lowered from 35 percent to 21 percent starting in 2018.
Pass-through businesses would have a 20 percent deduction for non-wage income under certain circumstances, reducing their effective marginal tax rate to no more than 29.6 percent.
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 of 14 percent for cash profits and 7 percent for non-cash assets.
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.

Other Provisions

This bill would open a portion of the non-wilderness coastal plain of Alaska’s Arctic National Wildlife Refuge to energy development, estimated to raise $1.1 billion in tax revenue over the 10-year budget window.
Revenue from offshore energy production would be temporarily increased for the Gulf Coast in 2020 and 2021 to allow states to invest in coastal restoration and hurricane protection.

","official_title":"An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018.","short_title":"Tax Cuts and Jobs Act","popular_title":null,"short_summary":"(This measure has not been amended since the House agreed to the Senate amendment without amendment on December 20, 2017. The summary of that version is repeated here.)\n\nThis bill amends the Internal Revenue Code (IRC) to reduce tax rates and modify policies, credits, and deductions for individuals and businesses. It also establishes an oil and gas leasing program for the Coastal Plain of the Arctic National Wildlife Refuge (ANWR) in Alaska.\n\n(Unless otherwise specified, provisions referred to in this summary as temporary or as a suspension of an existing provision apply for taxable years beginning after December 31, 2017, and before January 1, 2026.)\n\nTITLE I\n\nSubtitle A-- Individual Tax Reform\n\nPart I--Tax Rate Reform\n\n(Sec. 11001) This section temporarily replaces the existing tax brackets (10%, 15%, 25%, 28%, 33%, 35%, and 39.6%) with new brackets (10%, 12%, 22%, 24%, 32%, 35% , 37%) and specifies the income levels that apply for each bracket.\n\nThe bill also: (1) modifies the taxati...","summarized":true,"cost":null,"cost_commentary":"The CBO estimates that enacting this legislation would increase budget deficits by about $1.46 trillion over the 2018-2027 period (not including the effects of enacting the legislation on the economy).","impact":"American taxpayers; businesses; and the federal government.","argument_for":"The tax code is overly complex, and tax rates are too high. 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Believer in the power of an informed populace using smart tools at the right time. @Countable founder.","twitter_id":"bartolah","facebook_id":"bartmyers","youtube_id":null,"google_plus_id":"","website":"","slug":"bart","issue_count":58,"is_following":null,"influence_score":76005,"influence_level":40,"follower_count":1991,"following_count":945,"position_count":55,"id":"0emQpZxM","partner_id":null},{"name":"OlderNWiser","vote_count":560,"photos":{"large":"https://graph.facebook.com/1547945068553384/picture?width=150&height=150","small":"https://graph.facebook.com/1547945068553384/picture?width=75&height=75","tiny":"https://graph.facebook.com/1547945068553384/picture?width=20&height=20","facebook":"https://graph.facebook.com/1547945068553384/picture"},"links":{"following":"/api/users/49VBk1P9/following","followers":"/api/users/49VBk1P9/followers"},"about_me":"Retired RN and therapist cherishing solitude but so concerned with our plunging into fascism with a full dictatorship a realistic possibility, activism is to write and call regularly, as demonstration days are over.","twitter_id":null,"facebook_id":null,"youtube_id":null,"google_plus_id":null,"website":null,"slug":"oldernwiser","issue_count":10,"is_following":null,"influence_score":22470,"influence_level":40,"follower_count":306,"following_count":189,"position_count":505,"id":"49VBk1P9","partner_id":null},{"name":"Judith","vote_count":133,"photos":{"large":"https://assets.causes.com/user/avatar/yWjwJ2PZ/large_ywjwj2pz-1489213939.jpg","small":"https://assets.causes.com/user/avatar/yWjwJ2PZ/small_ywjwj2pz-1489213939.jpg","tiny":"https://assets.causes.com/user/avatar/yWjwJ2PZ/tiny_ywjwj2pz-1489213939.jpg"},"links":{"following":"/api/users/yWjwJ2PZ/following","followers":"/api/users/yWjwJ2PZ/followers"},"about_me":"To all Progressives: Follow each other on this site! I noticed how the Repubs all do that and have lots of followers but little of value to say. We must unite. Hey 45: You have the right to remain silent. We welcome it! We are not a third world country. We have a right to excellent healthcare, excellent schools, quality food, great working conditions and benefits, etc. Our children have the right to grow up in a clean unadulterated world that is not going to kill them. Our elders should not have to work like dogs after 60, rather they should be able to have time to enjoy some of what's left of life before getting too ill to experience life. The 1% need to quit being so darn selfish and greedy. You have plenty! What you need to gain is empathy for your fellow human beings. Please take your shameful anarchist selfish Congress quietly into the night and let caring people work together to make the American dream come alive. You and President Bannon the racist anarchist are ruining it now; but you know that. 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elizabethsv11

Tax Cuts and Jobs Act: Cutting Taxes for Individuals and Businesses