The Senate Finance Committee released its own tax reform bill last Thursday, and we need to make our voices heard so that Congress passes tax reform this year!
Right now, there are some differences between the House bill and the Senate bill, and our guide below will help you familiarize yourself with the key provisions of the Senate bill.
Obviously, we’d like to see lower rates, less brackets, and a much, much simpler code. Now it’s time for the House and Senate to work together to deliver tax relief for the American people.
Read the details below and then call and tweet your senators to let them know what you think, and what changes you’d like to see. The most important thing right now is for us to make our voices heard!
The Senate bill includes the following:
- A reduction in the corporate tax rate from 35% to 20%. Unlike the House version, which called for the reduction to go into effect in 2018, the Senate’s corporate tax rate reduction would go into effect in 2019.
- Seven individual tax brackets: 10 percent, 12 percent, 22.5 percent, 25 percent, 32.5 percent, 35 percent, and 38.5 percent.
- Whereas the House bill would repeal the deduction for state and local income and sales tax and lower the cap for the deduction on state and local property taxes, the Senate version repeals entirely the SALT (state and local taxes) deduction.
- The Senate bill preserves the existing tax code’s mortgage interest deduction.
- The Senate bill, like the House bill, nearly doubles the standard deduction to $12,000 for individuals and $24,000 for couples.
- The Senate bill expands the Child Tax Credit to $1,650 (from the current $1,000) for children under age 18. The current law allows for the credit for children under 17. The Senate bill also provides an additional $500 credit for dependents other than children.
- The Senate bill preserves the estate tax, but doubles the current $5.49 million exemption for individuals. This contrasts with the House bill, which would end the estate tax after 2024, while providing for a doubling of the $5.49 million exemption for individuals until the repeal in 2024.
For too long, the U.S. economy has been saddled with a cumbersome tax code. Will you join our efforts to support comprehensive tax reform and help usher in a period of economic growth?
We have several opportunities this week for you to take action.
First, if you are a business owner or a community leader, you will want to check out our tax reform coalition. You can read more about our coalition here.
Please take the following actions this week to put pressure on Congress and the White House to implement meaningful tax reform.
1. This week, we are continuing to call Congress to encourage ALL members of Congress to support fundamental tax reform. We have suggested talking points for your use below. Be sure to thank House and Senate GOP leadership for working so hard to produce these two tax reform bills.
It looks like we do not have your address in our system, and therefore, cannot locate the members of Congress that represent your state and district. Please Update Your Profile to have this key information provided in the future. In the meantime, visit our Find Your Members of Congress area to locate this contact information, or call the Capitol Switchboard at 202-224-3121 to be transferred to each office. (NOTE: You will need to call the Capitol Switchboard each time to be transferred.)
2. Please make your voice heard on the topic of tax reform on social media. Suggested tweets are listed below.
4. Sign up to host a house party. House parties are one of the best ways you can help us get our message out and help others get involved. We can help you get started, and we will send you a house party kit with everything you need to host your own successful house party. Be sure to join the fun!
5. Sign our tax reform petition. Our petitions are the easiest and most effective way to make your voice heard.
And please continue to share this petition on social media.
We look forward to hearing from you, and to seeing your activity this week.
Jenny Beth Martin