House Republicans debuted their highly anticipated tax reform bill Thursday morning under the title The Tax Cuts and Jobs Act. The bill will see a number of wide-ranging tax cuts to both corporate and individual taxpayers, as well as bigger family tax credits.
One of the more highly contested points of the bill, before it's unveiling, was whether or not there would be a limit on 401(k) contributions. It appears that the plan released on Thursday would retain the savings plan where 401(k)s were concerned while allowing filers to write off “the cost of state and local property taxes up to $10,000,” according to Politico.
The plan also leaves the top tax bracket at 39.6%, while reducing the individual brackets to three others: 12%, 25%, and 35%. The income threshold rate for the 39.6% bracket was pushed to $1 million for a married couple, per The Wall Street Journal. The child tax credit would also be raised to $1,600.
The Tax Cuts and Jobs Act looks to provide Americans with the widest change in tax code within the last 30 years.
In terms of the estate tax — something that President Donald Trump has long championed doing away with — The Tax Cuts and Jobs Act would see the exemption doubled for that particular tax while doing away with it entirely after six years.
Republicans and the president alike have claimed that they want to see tax reform on the president's desk by the end of 2017.
The House Ways and Means committee, according to the WSJ, is wanting to review and consider the bill next week with the aim of upping that end date to Christmas. As a result, many of the bill's contents would take effect as soon as 2018.