Today, House Ways and Means Committee Chairman Brady introduced the much anticipated House Tax Reform Bill – The Tax Cuts and Jobs Act.  The bill is 429 pages, so it will take a little time to digest all the key provisions.  In the meantime, here are a few of the key points:

For individuals:

• The individual tax rates are 0%, 12%, 25% and 35%, a reduction from the current maximum rate of 39.6%.
• The standard deductions is approximately doubled for individuals and married couples.
• Introduces a new family credit, which expands the existing child tax credit.
• Continues the charitable contribution deduction.
• Retains the home mortgage interest deduction, but for homes up to $500,000.
• Continues to allow deduction for state and local property taxes, but only up to $10,000.
• Retains 401(k) plans.
• Repeals the much disliked alternative minimum tax for individuals.
• Doubles the existing estate tax exemption immediately, with a repeal of the estate tax after 6 years.

For businesses:

• Lowers corporate tax rate to 20%.
• Lowers maximum tax rate for certain pass-through businesses to 25%.
• Allows businesses to immediately write-off the full cost of new equipment.
• Replaces the existing world-wide tax system imposed on corporations with operations overseas.
• Retains low-income housing tax credits.

Stay tuned for more in-depth discussion of the tax bill.