COMPARE: House GOP and Senate GOP Tax Cut Plans

By NTK Staff | 11.09.2017 @3:40pm
COMPARE: House GOP and Senate GOP Tax Cut Plans

On Thursday afternoon, Republicans on the U.S. Senate Committee on Finance released a two-page summary (credit: Axios‘ David Nather) of their version of the Tax Cuts and Jobs Act. In other words, this is the Senate GOP’s first version of a tax cut plan. Now that the Senate GOP outline is out, it can be […]

On Thursday afternoon, Republicans on the U.S. Senate Committee on Finance released a two-page summary (credit: Axios‘ David Nather) of their version of the Tax Cuts and Jobs Act. In other words, this is the Senate GOP’s first version of a tax cut plan.

Now that the Senate GOP outline is out, it can be compared to the House GOP outline.

There are important similarities, and important differences. Here are some:

SIMILARITIES

  • Doubles the standard deduction for individuals ($6,350 to $12,000) and families ($12,700 to $24,000)
  • Preserves the child and dependent care tax credit
  • Preserves the deduction for charitable contributions
  • Retains popular retirement savings options like 401(k)s and IRAs
  • Repeals the alternative minimum tax (AMT)
  • Doubles the current exemption on the death tax
  • Lowers the corporate tax rate to 20 percent (from the current 35 percent)
  • Full and immediate expensing of new equipment for businesses

DIFFERENCES

  • The Senate plan expands the 0% tax bracket and keeps the 10% tax bracket (the House plan collapses the seven brackets to three: 12%, 25%, 35%)
  • The Senate plan expands the child tax credit from $1,000 to $1,650 (the House plan only expanded the credit to $1,600)
  • The Senate plan preserves the adoption tax credit (the House plan eliminated this credit)
  • The Senate plan keeps the home mortgage interest deduction for newly-purchased homes up to $1 million (the House plan kept the deduction for newly-purchased homes up to $500,000)
  • The House plan repeals the death tax after six years; the Senate plan appears not to do this

Overall, the Senate plan would appear to be more generous to taxpayers, and therefore more likely to pass with Democratic votes. Now, though, the House and the Senate will have to sort out their differences, if they’re to send a unified bill to President Trump.

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