Republican leaders have reached a broad agreement to resolve differences in their tax bills. Those briefed on the agreement say the final consensus bill will include the following:
- 37% top income tax rate (down from 39.6% under current law)
- 21% corporate tax rate (down from 35% under current law)
- New corporate tax rate is said to be effective in 2018 (vs 2019 under previous Senate proposal)
- Repeal of corporate AMT (vs maintaining corporate AMT in previous Senate proposal)
- Individuals may deduct up to $10,000 of income, sales or property taxes (the Senate initially included a full repeal of the state and local tax deduction)
- $750,000 of home acquisition indebtedness (down from $1 Million under current law)
The final version is said to primarily use the Senates approach to pass-through income for small business owners (likely with a lower deduction). The Senate bill originally proposed a 23% deduction on business income (with various phase outs).