GOP plan cuts corporate, individual taxes and repeals estate tax
The long-anticipated proposal still has a long way to go before it can be voted on.
A plan to be released Wednesday by the White House and House Republicans would provide large tax cuts to both corporations and individuals as part of their overall tax reform plan. The long-anticipated proposal still has a long way to go before it can be voted on but Republicans outlined their objectives in a nine-page document obtained by NBC News they will preview further later today.
House Republicans are being briefed on the plan at a gathering near Capitol Hill. Rep. Kevin Brady, chair of the Ways and Means Committee, is walking members through a plan that aims to reform the country's tax system. The plan includes long-held Republican goals of reducing the corporate tax rate and simplifying the tax code.
Republicans are unified in their desire to pass tax reform after failing so far to repeal the Affordable Care Act, one of the party's other big legislative agenda items. To help, President Donald Trump is traveling to Indianapolis later Wednesday to begin to sell the plan to the public.
One critical Republican has already reacted positively to the plan. Rep. Mark Walker, R-N.C., chair of the 170-member conservative Republican Study Committee called it "good news."
“At first glance the policies released today are good news to the American people," Walker wrote in a statement. "Republicans have to keep our promises to the American people on tax reform, repealing Obamacare, and securing the border before the end of the year.”
Here is what is in the plan:
- Repeals the estate tax
- Nearly doubles the standard deduction to $12,000 for individuals and $24,000 for those filing jointly
- Reduces the number of tax brackets from seven to three with the highest being 35 percent and the lowest being 12 percent
- Increases the child tax credit to an unspecified amount over the current $1,000
- Adds a $500 credit for the care of non-children dependents
- Eliminates most deductions, including the state and local tax deduction
- Preserves the mortgage interest deduction and the charitable deduction, two of the most popular deductions that more often benefit wealthier Americans
- Repeals the Alternative Minimum Tax
- Reduces the corporate tax rate to 20 percent
- Caps the small business rate to 25 percent
- Transitions the global corporate tax to a territorial tax
- Aims to repeal the corporate AMT