Congressional Republicans on Friday evening revealed the final version of their massive tax bill, which appears likely to pass next week, the Washington Post reports. Here's some of what's included in the "Tax Cut and Jobs Act":
- The corporate tax rate is reduced from 35% to 21%, representing an approximately $1 trillion tax cut over the next decade.
- Despite Trump's claim the bill wouldn't cut taxes for the wealthy, the wealthiest Americans see their tax rate reduced from 39.6% to 37%. The bill also raises the income needed to hit that tax rate.
- People can inherit up to $11 million tax-free—an increase from $5.5 million—in changes to the estate tax.
- The bill lowers tax rates within all seven tax brackets, leading to lower taxes for most Americans, ABC News reports. But those cuts expire in eight years, and independent analyses have found people making under $75,000 will pay more in taxes over the next decade.
- The standard deduction is increased from $12,700 to $24,000 for joint filers and from $6,350 to $12,000 for individuals.
- In a move seen as targeting blue states, the bill limits state, local, and property tax deductions to $10,000. Those deductions are unlimited under current law.
- The bill keeps popular deductions for student loan interest and medical expenses, as well as graduate students' tax break.
- The bill repeals the ObamaCare individual mandate and allows drilling in the Arctic National Wildlife Refuge, the Hill reports.
The Tax Cut and Jobs Act will be voted on next week, starting with the House on Tuesday. Republicans can only afford to lose two votes in the Senate, but there are currently no Republican senators on the record against the bill. Analysts have suggested tax cuts in the bill will add $1.5 trillion to the deficit and would likely not pay for themselves through economic growth, as Republicans and the Trump administration claim. (Read more tax reform