Republicans release the Tax Cuts and Jobs Act
House Republicans released their Tax Cuts and Jobs Act on Thursday, a tax reform proposal that includes new tax brackets and rates, The Wall Street Journal reports.
The proposal would not change the tax rate for married Americans making more than a million dollars, which is currently at 39.6 percent. Married Americans making up to $90,000 would pay 12 percent, which could potentially mean they pay more; under current law, married couples making less than $18,650 only pay 10 percent, but couples making up to $75,900 pay 15 percent. The GOP additionally proposed that married couples making $260,000 pay 25 percent, and American families making up to $1 million, 35 percent.
Republicans have also proposed raising the standard deduction, with married couples able to deduct $24,000, up from the current $12,700. The child tax credit, now at $1,000, would also get a boost, to $1,600 plus $300 for the taxpayer, spouse, and non-child dependents.
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Only very minor changes were proposed for retirement accounts, while the GOP additionally proposed lowering mortgage interest deduction for new homes to $500,000, down from today's $1 million. The GOP also proposed a $10,000 cap on state and local tax deduction (SALT). Read the full breakdown at The Wall Street Journal, and why the Republican tax plan is already on the ropes at The Week.
