The House of Representatives passed its tax reform bill last Thursday, and now we are shifting our attention to the Senate.
As a reminder, here’s a brief overview of the Senate bill:
- 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.
Please visit and watch our brand new video featuring Art Laffer, renowned economist, as he explains the need for tax reform.
Next, please be sure to share the video with your friends on social media.
Finally, please let us know what you’re thankful for this season. Maybe you’re thankful to be an American, or for our nation’s Constitution that guarantees our rights, or maybe you are still celebrating that we won the White House in last year’s election. We all have so much for which to be thankful, so please send me an email and share what is on your mind during the week of Thanksgiving. I am grateful for all of our supporters, for our country, and for our cherished rights.
Have a wonderful Thanksgiving! We will be back in touch immediately after Thanksgiving with more high-impact ways to engage on tax reform.
Jenny Beth Martin
- The U.S. tax code is a complicated mess and a drain on the economy.
- Americans waste time and money preparing their taxes each year because our tax code is so complicated.
- Tax reform in our country is long overdue.
- Americans want a tax code that is flatter, with fewer brackets.
- Americans want a tax code that is simpler, with less need to employ accountants and tax attorneys to navigate the code.
- Our current tax system slows economic growth, and reduces opportunity and wages for all Americans.
- President Trump campaigned on pro-growth tax reform, and the American people stand behind him on that goal.
- Americans are ready for tax reform that moves our nation forward.
- The proposed tax reform will make the United States a better place to invest and do business.
- The House GOP’s tax bill addresses many of the most serious problems plaguing our tax code, including excessively high tax rates for corporations and incentives for businesses to move abroad.
- The House and Senate tax bills have much-needed simplifications, including eliminating and reducing many deductions, such as the SALT (state and local tax) deductions for sales and income taxes.