|The U.S. Congress today passed a sweeping $1.5 trillion tax bill that slashes tax rates for corporations, provides new breaks for private businesses, and reorganizes the individual tax code providing tax relief for most American and significant relief for the middle-class in the U.S.
U.S. Congress passes sweeping individual, corporate and international tax reform; Trump to sign into law – 12:56pm, December 20, 2017
This is the first overhaul and reform of the U.S. tax code in 31 years.
The final vote in the U.S. House of Representatives was 224-201.
The final vote in the U.S. Senate was 51 to 48, with Sen. John McCain, R-Ariz., abstaining due to health reasons.
President Trump is expected to sign the bill into law by the end of the week.
Key points of the – Tax Cuts and Jobs Act
• The law drops the corporate tax rate to 21 percent from the current 35 percent. The change would take effect next year.
• It sets a 20 percent business income deduction for the first $315,000 in income earned by pass-through businesses.
• The law eliminates the corporate alternative minimum tax and increases the exemption from the individual AMT.
• It lowers individual taxes, and sets the rates at 0%, 10%, 12%, 22%, 24%, 32%, 35%, and 37%.
• The law significantly increases the standard deduction to protect roughly double the amount of what a taxpayer earns each year from taxes – from $6,500 and $13,000 under current law, to $12,000 and $24,000 for individuals and married couples, respectively.
• It eliminates the Affordable Care Act’s (Obamacare) individual mandate penalty tax by providing families with relief and flexibility to buy the health care that’s right for them.