Differences between House & Senate Tax Plan

Confusing about the difference in the House and Senate tax plans? Here are the differences so far. They keep changing so we will keep this updated:

  • The House plan has four tax brackets: 12%, 25%, 35%, and 39.6%, while the Senate just updated their brackets to: 10%, 12%, 22%, 24%, 32%, 35%, and 38.5%.
  • They both nearly double the standard deduction at $12,000 for individuals and $24,000 for married couples.
  • Both bills would lower the corporate tax rate from the highest in the developed world at 35% to 20%, although the Senate has a one-year delay.  
  • The House has a child tax credit of $1,600 per child for married couples making under $230,000. The Senate has just increased it to $2,000 per child for families making under $500,000 (but it would expire in 2025).
  • The House also includes a $300 family tax credit for each parent and non-child dependent. They both keep the child and dependent care tax credit and adoption tax credit.
  • Both remove deductions for state and local taxes, although the House allows a $10,000 deduction for local property taxes. 
  • They both maintain deductions for interest on mortgages. The House allows interest to be deducted for the first $500,000 of a home's mortgage; the Senate's limit is $1 million. 
  • Both the House and the Senate keep the charitable contribution deduction, while the Senate bill also has deductions for medical expenses, student loan interest, uninsured losses from federally declared disasters, and an earned income tax credit for low and middle-income workers. 
  • Only the House plan repeals the death tax (by 2024) but the Senate plan doubles the current estate tax exemption. 
  • The Senate plan includes a repeal of the Obamacare individual mandate.
  • House is expanding 529 plans to allow $10,000 a year for K-12 education.

With the House passing their plan, it is time for the Senate to do the same. Click here to contact your Senators to pass tax reform that lowers taxes for working Americans!

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published this page in News 2017-11-16 07:06:23 -0500