Republican legislators unveiled their long-awaited overhaul of the nation’s outdated and oversized tax system on Thursday; publishing the broad outlines of the GOP’s proposal as it makes its way through Congress.
Here’s what’s inside:
- Changes to individual tax rates: Reduces individual tax brackets from seven down to three, and caps the top rate for the nation’s highest earners at 39.6%.
- Middle Class Deductions: Standard deductions for middle class Americans will double to $24,000 for married couples and $12,000 for individuals.
- Eliminates medical deductions.
- No changes to 401(k) retirement plans.
- Eliminates estate tax over the course of six years.
Republican leaders are optimistic the plan, which will be subject to change as it works its way through both houses of Congress, has a “great” chance of being signed into law by President Trump before the new year.
“It looks very positive, these people are excited,” said Rep. Kevin McCarthy. “This is why they came to Congress.”