The following excerpt is from an article that originally appeared on Hit and Run Reason
House Republicans passed a major overhaul to the tax code todayRon Sachs/CNP/AdMedia/Newscom. The bill passed 227 to 205 on a party line vote, with a handful of Republicans, mostly from high-tax blue states, joining Democrats in opposition.
The House plan cuts taxes by roughly $1.5 trillion over the next decade, with tax reductions for both businesses and individuals. The plan would slash the corporate tax rate from 35 percent down to 20 percent, and would condense the current seven individual income tax brackets into four while expanding the child tax credit and doubling the standard deduction.
The lower corporate tax rate would be a permanent change. However, a new $300 tax credit dubbed the “family flexibility credit” that is intended to help middle would expire in 2023, leading one analysis to find that, after that year, only 40 percent of Americans would pay lower taxes under the plan—and 22 percentpost was originally published on this site