As reported by NBC News, Republicans released the logistics of their tax reform plan earlier today.
What Does The Plan For Tax Reform Entail?
Put simply, the aforementioned tax plan great reduces and slashes a plethora of various taxes. Firstly, the reform has a significant impact on individual taxes. Under the GOP’s plan, estate tax and alternative minimum tax are no more. Also, the plan reduces the number of tax brackets from seven to three.
Standard deductions for sole individuals increase to $12,000 while those who file together have a standard deduction of $24,000. The child tax credit goes past $1,000 and the majority of deductions are eliminated with the exception of the charitable deduction and mortgage interest deduction.
As far as corporate taxes are concerned, the small business rate moves to 25%, while the corporate tax rate goes down to 20%. Additionally, global corporate tax shifts to territorial tax. The GOP’s tax plan also works towards ending the corporate AMT.
Statements From Republicans
Speaker of the House Paul Ryan gave the following statement about the Republican Party’s plan for tax reform:
