Last Updated Dec 19, 2017 1:56 PM EST
The House began debating the tax bill at about 12:20 p.m. ET Tuesday,and plans to vote on the tax bill at around 1:30 p.m. to 2 p.m. ET. If it passes, as expected, the Senate will take it up later in the evening.
“This is the greatest example of a promise being made and promise being kept,” Speaker Paul Ryan, R-Wisconsin, said at a press conference a few hours before the vote.
GOP lawmakers from both chambers struck a deal last week on the tax plan and released the legislative text on Friday. The tax plan also includes a repeal of the Obamacare individual mandate.
Here are the details of the final tax agreement, according to highlights from the conference committee:
- Eliminates penalty under the Affordable Care Act for failing to have health insurance
- Lowers corporate tax rate from 35 percent to 21 percent (higher than the original 20 percent in the House and Senate bills)
- Reduces top effective marginal tax rate for S corporations to a top rate of 29.6 percent, allowing for a 20 percent tax deduction that applies to the first $315,000 of joint income earned by all S-corporations
- Eliminates corporate Alternative Minimum Tax (AMT); increases the exemption amount from the AMT for individuals
- Keeps seven individual tax brackets, although those brackets would change.
- Continues to exempt the value of tuition waivers from taxes (the GOP had considered counting tuition waivers as income, and thus, taxable.)
- Increases the refundable portion of the child tax credit to $1,400, thanks to Sen. Marco Rubio’s insistence. The overall child tax credit will increase from $1,000 to $2,000.
- Roughly doubles the standard deduction, from $6,350 to $12,000 for individuals, and from $12,700 to $24,000 for married couples filing jointly
- Preserves the child adoption tax credit
- Allows filers to write off the cost of state and local taxes, but only up to $10,000. Filers must choose from among sales, income and property taxes for the deduction, instead of being able to deduct all local taxes.
- Preserves the mortgage interest deduction for all homeowners with existing mortgages, and for homeowners with new mortgages, the home mortgage interest deduction will be available up to $750,000
- Preserves the charitable deduction as it is
The GOP claims the bill will mean a $2,059 tax cut for a family of four earning the median family income of $73,000.
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