It cuts the corporate tax rate from 35 percent to 20 percent but appears not to eliminate many of the current exemptions that cut the average corporate tax bill to 18 percent. The bill would reduce the current six tax brackets to four; 39.6 percent for households making more than $1 million annually, and 35 percent on incomes from $260,000 to $1 million. A 25 percent rate would apply from $90,000 to $260,000, and 12 percent from $24,000 to $90,000. Households making less than $24,000 would pay no income tax.
The plan:
- Caps the mortgage-interest deduction on new home sales at $500,000 rather than the current $1 million for couples filing jointly.
- Caps deductions for state and local property taxes at $10,000 and repeals other state and local tax deductions.
- Eliminates deductions for student loan interest
- Taxes endowments at large schools at a 1.4 percent rate.
- Raises the childcare tax credit from $1,000 to $1,600, and
- Leave provisions for 401 (k) retirement savings plans untouched.
"Meanwhile, as corporations receive a major tax cut, small businesses, which generate the lion's share of job growth, get limited relief.
According to Granger, "Congress is ignoring the needs of America's working class families and small businesses. And by undermining the nation's longstanding support for homeownership and threatening to lower the value of the largest asset held by most American families, this tax reform plan will put millions of home owners at risk."
