In what will be a welcome surprise to many, the House Republicans' tax bill, according to early details unveiled on Thursday, did not include one of the most controversial ideas that had been floated for weeks.
Details from it offers the first look at how House Republicans want to reshape the tax code.
The rollout, originally scheduled for Wednesday, was postponed to give bill drafters more time.
Having given up on all such big revenue boosters to grease the skids for tax cuts that the public might find irresistible, the trick for the GOP will be making individual tax cuts sufficiently attractive. As a result, some of the tax changes have been made temporary or phased in over time. For instance, a married couple with the current standard deduction of $12,700 would need their mortgage interest and other deductions to be more than that amount for it to be beneficial to itemize. And a new family credit of $1,600 would replace the existing child tax credit of $1,000. The estate tax, nicknamed the death tax, only affects Americans who die with more than $5.49 million in assets.
Corporate profits from overseas would no longer be taxed, but there would be a minimum 10 percent tax on foreign subsidiaries. Even if top income earners pay the same rate that they pay now, Democrats will likely point to other expected changes that they say will benefit the wealthy, such as a repeal of the estate tax.
Ryan, according to multiple sources, told conservative leaders in the that the bill will keep the top rate, but it would apply to people who make substantially more money than those who now pay the same rate now.
Now the hard part begins, as Washington whips into a frenzy over the GOP's plans to deliver the tax bill by the end of the year. The entire business tax system is also changing from a worldwide system in which money anywhere around the globe is taxed to a territorial system in which it's mostly money made in the US that is taxed.
The congressman remained hopeful the accounts would not be eliminated.
"We are just getting started, and there is much work left to do".
But that's politically challenging.
The cherished ability to deduct mortgage interest costs from taxable income is also curtailed, with Republicans proposing to make it available only for new home purchases under $500,000.
The full bill, which can be read here, calls for a permanent cut to the corporate tax rate from 35% to 20% and other business-friendly moves.
_Families: Eliminates personal exemptions of $4,050 for each family member. President Donald Trump nominated Jerome "Jay" Powell as the next chair of the Federal Reserve. "I think we found the sweet spot that's going to be able to get this done and get it to the President's desk".
Businesses could immediately expense the cost of new investments instead of depreciating over a matter of years. While it's not clear exactly how this tax will work, it could potentially raise the tax bill on foreign earnings for companies like Apple, Alphabet (GOOGL) and Pfizer (PFE) that now pay single-digit tax rates on overseas profits.
Democrats have been demanding that the plan help only the middle class, not the wealthy. "This Republican plan doesn't do any of that".
GOP lawmakers from high-tax states like NY and New Jersey have mixed opinions about a plan by House leaders to permit taxpayers to continue to be able to deduct property taxes but lose the deduction for state income taxes.
Sources told CNN the delay is not due to the NY terror attack that killed at least eight people Tuesday, but instead is due to ironing out key details on the tax plan.
In the case of the child tax credit, activists say that while the parents may be in the country illegally, their children are often USA citizens who deserve the credit. The development comes as Republicans are scrambling to assemble a complete draft of their long-awaited plan to dramatically rewrite the tax code. Of that one-third, 74 percent take the mortgage interest deduction, according to the Urban-Brookings Tax Policy Center.
There are good arguments to be made for these, especially the AMT, which has always been a problem for businesses filing under the individual tax code and for upper-middle-class earners.
Trump has intensified his lobbying for the almost $6 trillion tax overhaul plan. "This is just moving stuff around, raising taxes on some people, cutting taxes on some people - it's all political". "It will also be tax reform and it will create jobs".