Question

Write a summary of GOP tax plan?

Answer 1

***For future reference; give an estimate word limit also you need for the answer***

Individual tax rates:

Seven rates, starting at 10 percent and reaching 37 percent for incomes above $500,000 for singles and $600,000 for married, joint filers.
For joint filers:

• 10 percent: $0 to $19,050
• 12 percent: $19,050 to $77,400
• 22 percent: $77,400 to $165,000
• 24 percent: $165,000 to $315,000
• 32 percent: $315,000 to $400,000
• 35 percent: $400,000 to $600,000
• 37 percent: $600,000 and above

For single filers:

• 10 percent: $0 to $9,525
• 12 percent: $9,525 to $38,700
• 22 percent: $38,700 to $82,500
• 24 percent: $82,500 to $157,500
• 32 percent: $157,500 to $200,000
• 35 percent: $200,000 to $500,000
• 37 percent: $500,000 and above

Tax rates for corporates:

The legislation will result in substantive tax reform for corporations, with the elimination of the AMT and consolidation down to a single 21% tax rate, all of which are permanent

Equipments. plants and machinery

In the new law, businesses could fully and immediately deduct the cost of certain equipment purchased after Sept. 27, 2017 and before Jan. 1, 2023. After that, the percentage of cost that could be immediately deducted would gradually phase down.

For bringing investments back to states

U.S. companies’ which have parked the their income in overseas held as cash would be subject to a 15.5 %, while non-cash holdings would face an 8 %. Moreover, Companies can make the payments in eight annual installments.

Pass-Through Deduction

Owners could apply a 20 percent deduction to their business income, subject to limits that would begin at $315,000 for married couples (or half that for single taxpayers).

Standard Deduction and Personal Exemptions

$12,000 standard deduction for single taxpayers and $24,000 for married couples, filing jointly. Personal exemptions have been repealed.

Individual State and Local Tax Deductions

Individuals can deduct no more than $10,000 worth of the deductions, which could include a combination of property taxes and either sales or income taxes.

Mortgage Interest Deduction

Deductible mortgage interest for new purchases of first or second homes would be capped at loans of $750,000 starting on Jan. 1, 2018.

Medical Expense Deduction

Reduce the threshold to 7.5 percent of AGI for 2017 and 2018.

Child Tax Credit

Double the credit to $2,000 and provide it for each child under 17 through 2025. Raise the phase-out amount to $400,000, and cap the refundable portion at $1,400 in 2018.

Estate Tax

Double the thresholds so the levy applies to fewer estates. The higher thresholds would sunset in 2026.