Republicans released their final tax bill Friday, the result of conference between the House and Senate. The final legislation proposes seven tax brackets for individual earners, with the top rate capped at 37 percent, down from 39.6 percent. The corporate tax rate is lowered to 21 percent from 35 percent.
Dubbed the Tax Cuts and Jobs Act, the bill overall includes $1.5 trillion in tax cuts. The latest version notably retains a deduction for state and local taxes, which had been scrapped from versions of the bill in both the House and Senate to the consternation of some Republicans in California and the Northeast. It also expands the child tax credit to be fully refundable up to $1,400 — a concession to Sen. Marco Rubio (R-Fla.) — as well as preserves deductions for mortgage interest, medical expenses, and charitable contributions.
After the child tax credit expansion prompted Rubio earlier Friday to flip to a "yes" vote, Tennessee Sen. Bob Corker (R) also announced that he would back the bill, likely sealing enough support for the bill to pass the Senate and hit President Trump's desk. Republicans have said they hope to deliver the measure to the president by Christmas.
Critics of the bill warn that the sweeping tax cuts are not sufficiently offset and will cause the federal deficit to balloon. Read more about the bill at The Wall Street Journal, or see a summary of its contents below. Kimberly Alters