Lowers the corporate tax rate to 20% - down from 35%, which today is the highest in the industrialized world - the largest reduction in the USA corporate tax rate in our nation's history. The bill would also lower the corporate tax rate, which is now the highest in the industrialized world. Among them, the bill would limit state and local deductions and the mortgage interest deduction, eliminate the personal exemption and almost double the standard deduction. The Republicans who voted no were from New York, New Jersey, California and North Carolina according to reporting by the New York Times.
Modernizes our international tax system so America's global businesses will no longer be held back by an outdated "worldwide" tax system that results in double taxation for many of our nation's job creators.
Alternative minimum tax: The alternative minimum tax (AMT), which was created to affect only the wealthiest taxpayers but has been a thorn in the side of millions of others, would be completely repealed. Additionally, the plan lowers the tax rate on small businesses to the lowest it has been since WWII. (Note that the top rate will remain at 39.6%.) In addition, a "bubble tax" of 6% would apply to a portion of adjusted gross income (AGI) above $1 million. For instance, it would effectively allow 100% Section 179 expensing of business property for a five-year period, but repeal the Section 199 manufacturing deduction and Work Opportunity Tax Credit (WOTC).
In terms of capitalizing America's largest employers, $2 trillion would capitalize Walmart (1.3 million jobs), HomeDepot (340,000 jobs) General Electric (305,000 jobs), Kroger (443,000 jobs), IBM (380,300 jobs) more than twice over. "A simple, fair, and competitive tax code will be rocket fuel for our economy, and it's within our reach", said White House Press Secretary Sarah Huckabee Sanders, according to reporting by Bloomberg's Anna Edgerton. Many economists doubt that will be the case.
The U.S. House of Representatives voted 227-205 to pass the Tax Cuts and Jobs Act, which will cause major changes to tax rates for individuals and businesses.
House members "ignored impacts to the poor and families" in passing the Tax Cuts and Jobs Act Nov. 16, said Bishop Frank J. Dewane of Venice, Florida.
Ron Johnson's criticisms of the Republican tax reform bills and has been encouraging him to work with his colleagues in the upper chamber to strike an agreement.