The Washington Examiner pulled together a list of the most important parts of the proposal for families and corporations.
Here are the highlights of the bill for individuals and families:
•The new individual income tax rates are 0 percent, 12 percent, 25 percent, and 35 percent.
•The standard deduction goes from $6,350 to $12,000 for individuals and $12,700 to $24,000 for married ocuples.
•Special-interest deductions that complicate taxes are eliminated so the form can be “as simple as a postcard.”
•The bill establishes a new Family Credit, which includes expanding the Child Tax Credit from $1,000 to $1,600, and gives a credit of $300 for each parent and non-child dependent.
•The bill preserves the Earned Income Tax Credit.
•The deduction for charitable donations is continued.
•The home mortgage deduction is maintained for current mortgages, but is capped for new homes at $500,000.
•It allows people to write off state and local property taxes up to $10,000
•The bill doesn’t touch 401(k)s or Individual Retirement Accounts.
•The Alternative Minimum Tax is repealed.
•The exemption for the Estate Tax is doubled and the tax will be repealed in full in six years.
Republicans also released a list of bullet points outlining changes to taxes on corporations and small businesses:
•Lowers the corporate tax rate to 20% — down from 35%, which today is the highest in the industrialized world — the largest reduction in the U.S. corporate tax rate in our nation's history.
•Reduces the tax rate on the hard-earned business income of Main Street job creators to no more than 25% — the lowest tax rate on small business income since World War III.
•Establishes strong safeguard to distinguish between individual wage income and "pass through" business income so Main Street tax relief goes to the local job creators it was designed to help most.
•Allows businesses to immediately write off the full cost of new equipment to improve operations and enhance the skills of their workers — unleashing the growth of jobs, productivity, and paychecks.
•Protects the ability of small businesses to write off the interest on loans that help these Main Street entrepreneurs start or expand a business, hire workers, and increase paychecks.
•Retains the low-income housing tax credit that encourages businesses to invest in affordable housing so families, individuals, and seniors can find a safe and comfortable place to call home.
•Preserves the Research & Development Tax credit — encouraging our businesses and workers to develop cutting-edge 'Made in America' products and services.
•Strengthens the accountability rules for tax-exempt organizations to ensure the churches, charities, foundations, and other organizations receiving tax-exempt status are focused on helping people communities in need.
•Modernizes our international tax system so America's global businesses will no longer be held back by an outdated 'worldwide' tax system that results in double taxation for many of our nation's job creators.
•Makes it easier and far less costly for American businesses to bring home foreign earnings to invest in creating jobs and increasing paychecks in our local communities.
•Prevents American jobs, headquarters, and research from moving overseas by eliminating incentives that now reward companies for shifting jobs, profits and manufacturing plans abroad.