House Republicans release the details of their tax plan. The corporate tax would fall to 20% from the current rate of 35% (highest in the industrial world). The plan would double the personal deduction but eliminate the dependent child deduction. The child tax credit would increase from $1000 to $1600. A checklist of the changes:
- The new individual income tax rates are 0 percent, 12 percent, 25 percent, and 35 percent.
- The standard deduction goes from $6,350 to $12,000 for individuals and $12,700 to $24,000 for married ocuples.
- Special-interest deductions that complicate taxes are eliminated so the form can be “as simple as a postcard.”
- The bill establishes a new Family Credit, which includes expanding the Child Tax Credit from $1,000 to $1,600, and gives a credit of $300 for each parent and non-child dependent.
- The bill preserves the Earned Income Tax Credit.
- The deduction for charitable donations is continued.
- Lowers the corporate rate to 20% – down from 35%, which today is the highest in the industrialized world — the largest reduction in the U.S. corporate tax rate in our nation’s history.
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