Republicans release 429-page Tax Cut and Jobs Act

The House Republicans have finally released details of the Tax Cut and Jobs Act. It is 429 pages and merely shifts the tax burden without achieving any meaningful reform or cuts.

In fact, the biggest thing the GOP accomplishes with the legislation is that it will inevitably increase the budget deficit for the remainder of President Donald Trump’s time in the White House, whether it’s through 2020 or 2024.

Since you likely don’t have time to peruse the 429-page bill, which will ultimately expand to 1,000 pages once the special interest groups get their hands on it, here are 10 key highlights from the Republican legislation.

1. Child tax credit will be raised from $1,000 to $1,600.
2. Alternative Minimum Tax will be eliminated.
3. Tax credit for adoptions will be gone.
4. The Death Tax will be eradicated in six years.
5. Tax-exempt bonds will not be alowed to be used to build professional sports stadiums.
6. To prevent money leaving the U.S., corporations and their high-profit foreign subsidiaries will be hit with a 10 percent tax.
7. The $7,500 tax credit for electric vehicles will no longer be in the tax code.
8. Income tax brackets will be reduced to four: 12 percent, 25 percent, 35 percent and 39.6 percent.
9. Corporate tax rate will be 20 percent.
10. The maximum tax rate on small businesses and non-corporate enterprises will be 25 percent, down from 39.6 percent.

Again, there isn’t really any significant tax cut; it simply moves around the tax burden.

Here is a great tax reform plan: scrap the tax code!

Like this article? Get ECN delivered to your inbox daily. Subscribe here.

Leave a Comment