Final gop tax bill details have finally come out. They appear to have locked down the votes they need to pass the measure through the House and Senate after Sens. Marco Rubio (R-Fla,) and Bob Corker (r-Tenn.) pledged their support. Overall, the Tax Cuts and Jobs Act represents the largest one time reduction in the corporate tax rate in U.S. History, from 35 percent down to 21 percent. The bill also lowers taxes for the vast majority of Americans, as well as small business owners–at least until the cuts expire after eight years.
Final gop tax bill details will not please everyone. Here are the details. A new tax cut for the rich. The final plan lowers the top tax rate for top earners. Under current law, the highest rate is 39.6% for married couples earning over $470,700. The GOP bill would drop that to 37 percent and raise the threshold at which that top rate kicks in, to $500,000 for individuals and $600,000 for married couples. A massive tax cut for Corporations. Starting on January 1st, 2018, big businesses tax rate would fall from 35 percent to just 21 percent, the largest one time rate cut in U.S. History for the nation’s largest companies. The House and Senate bills originally had the big business tax rate falling to 20 percent, but Republicans were not able to make the math work to keep the rate that law and start it right away in the new year, so they compromised by moving the rate to 21 percent. It still amounts to a roughly $1 trillion tax cut for businesses over the next decade. Republicans argue this will make the economy surge in the coming years, but most economists and Wall Street Banks predict only a modest and short lived boost to growth.
You can deduct just $10,000 in state and local property taxes. This is by far one of the most controversial parts of the tax bill as is hurts coastal states, predominately democratic voting states, the most. Several of these states have filed torts to stop this. Most Americans will pay less in taxes until 2026 when the tax cuts expire.