Republicans Release Tax Plan… Cuts Corporate Rate to 20%… NO Repeal of Obamacare Mandate?
Republicans Release Tax Plan, Cutting Corporate and Middle-Class Taxes
WASHINGTON — Republican lawmakers are unveiling the most sweeping rewrite of the tax code in decades, outlining a plan to cut taxes for corporations, reduce them for middle-class families and tilt the United States closer, but not entirely, toward the kind of tax system long championed by businesses, according to talking points circulated on Thursday.
The House plan, released after weeks of internal debate, conflict and delay, is far from final and will ignite a legislative and lobbying fight as Democrats, business groups and other special interests tear into the text ahead of a Republican sprint to get the legislation passed and to President Trump’s desk by Christmas.
The bill keeps a top rate of 39.6 percent for the highest-earners and roughly doubles the standard deduction for middle class families. It expands the child tax credit to $1,600 from $1,000 and will not make any changes to the 401(k) plans. It does propose changes to the popular mortgage interest deduction. Under the Republican plan, existing homeowners can keep their mortgage interest deduction but future purchases will be capped at $500,000. The bill cuts the corporate tax rate to 20 percent, from 35 percent.
According to the talking points, the bill “makes no changes to the popular retirement savings options that Americans have today — including 401(k)’s and Individual Retirement Accounts, or I.R.A.s. Americans will be able to continuing making both traditional, pretax contributions and ‘Roth’ contributions in the way that works best for them.”
Republicans Stick With Big Corporate Tax Cuts in House Bill
The Tax Cuts and Jobs Act seeks the biggest transformation of tax code in more than 30 years; leaves top individual tax rate at 39.6%
WASHINGTON—House Republicans, seeking the biggest transformation of the U.S. tax code in more than 30 years, aim to permanently chop the corporate tax rate from 35% to 20%, compress the number of individual income tax brackets, and repeal the taxes paid by large estates starting in 2024, according to a detailed summary of the plan reviewed by The Wall Street Journal.
Tax bill will not seek repeal of individual health insurance mandate
The tax reform bill to be released Thursday will not include a repeal of ObamaCare’s individual mandate, sources say, despite President Trump proposing the idea on Wednesday.
After debate, House tax plan won’t touch 401(k)