House Tax Plan Examples

House Tax Plan Examples The House Tax Plan, also known as the Tax Cuts and Jobs Act, was passed by the U.S. House of Representatives on November 16, 2017. The plan includes several changes to the individual and corporate income tax rates, as well as the estate tax.

Individual Income Tax Rates

The House Tax Plan would reduce the number of individual income tax brackets from seven to four. The new tax brackets would be: * 12% for taxable income up to $45,000 (single filers) or $90,000 (married filing jointly) * 25% for taxable income over $45,000 to $200,000 (single filers) or $90,000 to $400,000 (married filing jointly) * 35% for taxable income over $200,000 to $500,000 (single filers) or $400,000 to $1 million (married filing jointly) * 39.6% for taxable income over $500,000 (single filers) or $1 million (married filing jointly)

Corporate Income Tax Rate

The House Tax Plan would reduce the corporate income tax rate from 35% to 20%. This would make the U.S. corporate income tax rate one of the lowest in the developed world.

Estate Tax

The House Tax Plan would repeal the estate tax, which is a tax on the value of an individual's estate at death. The estate tax is currently levied on estates worth more than $11.18 million for individuals and $22.36 million for married couples. Examples of How the House Tax Plan Would Affect Taxpayers The following are some examples of how the House Tax Plan would affect taxpayers: * A single filer with a taxable income of $50,000 would see their taxes reduced by $1,218. * A married couple filing jointly with a taxable income of $100,000 would see their taxes reduced by $2,436. * A small business with a taxable income of $1 million would see its taxes reduced by $180,000. * A wealthy individual with an estate valued at $20 million would save $7.7 million in estate taxes.

Conclusion

The House Tax Plan would make significant changes to the U.S. tax system. The plan would reduce taxes for most individuals and corporations, and it would repeal the estate tax. The plan is likely to face opposition from Democrats in the Senate, and it is unclear whether it will ultimately be passed into law.