It is reprinted here with permission.
But it also includes a few provisions that might take big multinational corporations by surprise - and not in a good way, said Martin Sullivan, chief economist at Tax Analysts. However, some changes are more significant than others.
Territorial tax system: The United States has a worldwide tax system.
The same year that Clinton left office, President Bush shepherded tax cuts through Congress that mainly benefited high earners, as would be the case under Trump's plan. This means that their income is taxed on their owners' tax returns and not at the business level.
"Party leaders are rejecting criticism that their yet-to-be-unveiled tax plan will add to the ballooning federal deficit, saying the tax cuts will essentially pay for themselves by generating robust economic growth", the Times wrote.
"It continues to let corporations hang onto the tax breaks they currently have and even slashes their rates farther", she said. Specifically, machinery and equipment could be fully expensed (temporarily). The rest of the tax cuts appear to favor the wealthy. House Ways and Means Committee Chairman Kevin Brady (R., Texas) says the average person saves less than $200 a month in such accounts. Section 179 expensing for pass-through businesses would increase from $500,000 to $5 million, with a higher phaseout threshold. "Lowering the rates, protecting more of the first dollars you earned, making sure you have strong middle-class relief - but it's more than that".
The news sent shares in the country's largest homebuilders lower.
He added that the proposal could also "run up deficits significantly that would eventually have to be paid for and could threaten programs that do help low and middle income Americans whether that be health care coverage, Social Security, or investments like in infrastructure". "This plan strips away the ability for Americans to deduct medical costs, imposes new taxes on seniors and disabled veterans, and rewards the offshoring of jobs". The creation of a 25 percent rate for people who pay corporate taxes through the individual code - a popular way for the wealthy to reduce their tax obligation - will cost $448 billion. The plan immediately increases the exemption to $10 million.
For couples in which one spouse makes much more than the other, the situation in which you would expect substantial alimony, this change doesn't eliminate a divorce tax bonus.
The Republican tax plan hasn't met the expectations of advocates for "family-friendly" tax reform.
After trying and failing to repeal the Affordable Care Act, President Trump and congressional Republicans set their sights on a tax overhaul package. "So yes, definitely, we're very concerned this will have a chilling effect on the housing market". Nor could people with student loans deduct the interest paid on the debt anymore. This would be a credit of $300 for yourself and $300 for your spouse.
The House GOP plan is a "massive giveaway to billionaires, CEOs and big corporations", said Minnesota Democratic U.S. Rep. Betty McCollum, who argued that most middle-class families would see no tax benefit and some would pay more. In October, those numbers reversed, with Democrats holding a six-point advantage in voter trust on tax reform and a three-point lead on taxes and government spending.
Then, take a look at the second page.