On Friday evening, Republicans revealed the final version of their tax reform legislation. In more than 1,000 pages, the Tax Cuts and Jobs Act (H.R. 1) reported out by the House-Senate Conference Committee promises to cut the corporate tax rate to 21 percent, while Republicans say that the typical family of four earning the median family income of $73,000 will receive a tax cut of $2,059.
Republicans expect to vote on the measure on December 19. Conference Chairman Kevin Brady (R-TX) said, according to a release, "For the first time in 31 years, the House and the Senate have now come together to deliver pro-growth tax reform that will help more Americans across our country keep more of their hard-earned money. " He said that the tax reform will strengthen the economy, make American companies more competitive, and prevent jobs from going offshore.
According to a GOP document, "The Tax Cuts and Jobs Act (H.R. 1) overhauls America’s tax code to deliver historic tax relief for workers, families and
job creators, and revitalize our nation’s economy. By lowering taxes across the board, eliminating costly special-interest tax breaks, and modernizing our international tax system, the Tax Cuts and Jobs Act will help create more jobs, increase paychecks, and make the tax code simpler and fairer for Americans of all walks of life."
Some highlights of the bill:
For individuals and families, the Tax Cuts and Jobs Act:
• Lowers individual taxes and sets the rates at 0%, 10%, 12%, 22%, 24%, 32%, 35%, and 37% so people can keep
more of their hard-earned money.
• Significantly increases the standard deduction to protect roughly double the amount of what you earn each year
from taxes – from $6,500 and $13,000 under current law to $12,000 and $24,000 for individuals and married
• Continues to allow people to write off the cost of state and local taxes – up to $10,000. Gives individuals and
families the ability to deduct property taxes and income – or sales – taxes to best fit their unique circumstances.
• Takes action to support more American families by:
• Expanding the Child Tax Credit from $1,000 to $2,000 for single filers and married couples to help parents
with the cost of raising children. The tax credit is fully refundable up to $1,400 and begins to phase-out for
families making over $400,000. Parents must provide a child’s valid Social Security Number in order to receive
• Preserving the Child and Dependent Care Tax Credit to help families care for their children and older
dependents such as a disabled grandparent who may need additional support.
• Preserving the Adoption Tax Credit so parents can continue to receive additional tax relief as they open their
hearts and homes to an adopted child.
• Preserves the mortgage interest deduction – providing tax relief to current and aspiring homeowners.
• For all homeowners with existing mortgages that were taken out to buy a home, there will be no change to the
current mortgage interest deduction.
• For homeowners with new mortgages on a first or second home, the home mortgage interest deduction will
be available up to $750,000
Click here to see the tax bill.
Click here to see the Joint Committe on Taxation Revenue table.