Republicans plan to unveil their final tax reform plan today. They are scrambling, according to the Wall Street Journal, to contain the cost of cuts under it at $1.5 trillion because, without it, they would need Democrat support — of which there is none. The legislation is expected to be voted on by Congress next week.
According to reports, the new plan calls for a cutting the corporate rate to 21% (effective 2018), a 14 percentage-point cut. It also calls for trimming top-earners rate to 37% (from 39.6%) while expanding that bracket slightly to include lower incomes. State and local tax deductions would be capped at $10,000 and mortgage-debt interest at $750,000. The plan restricts the AMT to higher-earning individuals and increases breaks for small, “pass-through businesses”. Obamacare’s individual mandate would be repealed.
It’s going to a tough haul. In the Senate, the GOP can afford just two defections. Already, several Republican Senators are expressing objections to the bill. Senators Marco Rubio and Mike Lee, for example, are threatening to vote “no” unless a child-tax credit is expanded further.
Bloomberg is posting updates as they occur. It’s a great place to find out up-to-date information.
We’re monitoring the situation and will post all the details of the plan -- and how they will affect you and your business -- once we know them. Stay tuned.