The name "Cut, Cut, Cut Act" has been, well, cut, and that's not all. GOP House leaders are releasing what the Washington Post reports will be called the "Tax Cuts and Jobs Act," and details are emerging on precisely what's in it. Here are 8 key things to know, based on a summary of the proposal reviewed by the Post, AP, and New York Times, which calls the plan "far from final" and one that "tilt[s] the United States closer, but not entirely, toward the kind of tax system long championed by businesses." The aggressive goal is to get it passed in the House by Thanksgiving, with President Trump envisioning what the AP calls a "grand" signing ceremony before Christmas.
- Your 401(k) is safe: There's no change on this front.
- Big new mortgages won't help you: Right now, interest paid on mortgages of up to $1 million is deductible; going forward, the cap would be $500,000 on new mortgages only, something the Post sees as painful for would-be homeowners in pricey places like the Bay Area and NYC.
- Standard deduction doubles: It's what "most average Americans" use, and it would jump to $12,000 for individuals and double that for families.
- Corporations get a break: The corporate tax rate would sink from 35% to 20%.
- Kids get you more: The child tax credit would be upped to $1,600 from $1,000.
- More for the wealthy: The estate tax would be gone. And while the 39.6% tax rate would stay, it's possible the bracket would apply to families making at least $1 million, up from the current $470,000.
- Other taxes do less: The amount of local property taxes one could deduct would be capped at $10,000, and state income taxes wouldn't be deductible at all.
- Simplification overall: The number of tax brackets would decrease from seven to three or four. As the AP puts it, "most people would be able to file their returns on a postcard-sized form."
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