GOP Tax Plan Includes Secret “Millionaire Tax”

Via Billy

Yesterday, House Republicans finally unveiled their 2018 tax plan, and as we reported, there’s plenty in it to like. There’s a balance of tax cuts that are “paid for” in part by limiting deductions that disproportionately benefit higher earners – most prominently in blue states.

Among the highlights of the tax plan include:

1. Lowering individual tax rates for low- and middle-income Americans to Zero, 12%, 25%, and 35%; keeps tax rate for those making over $1 million at 39.6%
2. Increasing the standard deduction from $6,350 to $12,000 for individuals and $12,700 to $24,000 for married couples.
3. Establishing a new Family Credit, which includes expanding the Child Tax Credit from $1,000 to $1,600
4. Preserving the Child and Dependent Care Tax Credit
5. Preserving the Earned Income Tax Credit
6. Preserving the home mortgage interest deduction for existing mortgages and maintains the home mortgage interest deduction for newly purchased homes up to $500,000, half the current $1,000,000
7. Continuing to allow people to write off the cost of state and local property taxes up to $10,000
8. Repealing the Alternative Minimum Tax
9. Lowering the corporate tax rate to 20% – down from 35%
10. Reducing the tax rate on business income to no more than 25%
11. Establishing strong safeguards to distinguish between individual wage income and “pass-through” business income
12. Allowing businesses to immediately write off the full cost of new equipment
13. Retaining the low-income housing tax credit