House Tax Plan Details

The Republican-led House of Representatives passed a tax bill that promises to bring about sweeping changes to the U.S. tax code. The Tax Cuts and Jobs Act, as it is called, would cut taxes for businesses and individuals, increase the standard deduction, lower the number of tax brackets, and eliminate the individual mandate of the Affordable Care Act.

Key Provisions of the House Tax Plan

Individual Income Taxes:

The bill would lower individual income tax rates for all tax brackets. The top marginal rate would fall from 39.6% to 37%. The standard deduction would double to $12,000 for individuals and $24,000 for married couples. The personal exemption would be eliminated. *

Business Taxes:

The bill would reduce the corporate tax rate from 35% to 20%. It would also allow businesses to deduct the full cost of new equipment and machinery in the year it is purchased. *

Estate Tax:

The bill would repeal the estate tax, which is a 40% tax on the value of an estate when it is passed on to heirs. *

Affordable Care Act:

The bill would eliminate the individual mandate, which requires most Americans to have health insurance. It would also allow states to waive certain Obamacare regulations, such as the requirement that insurers cover essential health benefits.

Estimated Impact of the House Tax Plan

The Joint Committee on Taxation, a nonpartisan congressional committee, estimates that the House tax plan would cut taxes for individuals and businesses by $1.5 trillion over the next decade. The plan would also increase the federal deficit by $1.5 trillion over the same period.

Controversy and Debate

The House tax plan has been met with mixed reactions. Republicans argue that the plan will boost economic growth and create jobs. Democrats, on the other hand, say the plan will primarily benefit wealthy individuals and corporations and will hurt the middle class. The bill is now under consideration by the Senate, where Republicans have a slim majority. The Senate is expected to make changes to the bill, and it is unclear if the final version will resemble the House bill.

Conclusion

The House tax plan is a major piece of legislation that would have a significant impact on the U.S. economy and tax system. The bill is currently under consideration by the Senate, and it is unclear what the final version will look like.