Fed Tax Reform - Details from the Nebr Chamber

Our very own Nebraska Chamber did a nice job of summarizing the Tax reform bill....great for those of us that are busy!

'Details Of Federal Tax Reform Agreement'

Late today (Dec. 15), congressional Republicans unveiled the final text of their bill to rewrite the tax code and provide significant federal tax relief to businesses, families and individuals. 

According to media reports, House and Senate GOP leaders hope to pass the sweeping measure by the middle of next week and get the bill to the president's desk by Friday for his signature. It would mark the first time in 31 years that the federal tax code has seen this kind of change. 

Below are key provisions of the agreement, as detailed in a summary from Republican leaders and reported by CNBC and Bloomberg:

• The proposal would maintain seven individual income tax brackets at slightly different rates. The changes would phase out after 2025 due to congressional budget rules.
• The bill would scrap the personal exemption but increase the standard deduction to slightly less than double its current level. It would go to $12,000 for an individual or $24,000 for a family.
• The corporate tax rate would be reduced to 21% from the current 35%, taking effect next year -- the largest reduction in the corporate rate in U.S. history.
• Would set a 20% business income deduction for the first $315,000 in income earned by pass-through businesses (S corps, partnerships, LLCs and sole proprietorships). For pass-throughs with income above this level, the bill generally provides a deduction for up to 20% on business profits -- reducing their effective marginal tax rate to no more than 29.6%.
• Would allow businesses to immediately write off the full cost of new equipment to improve operations and enhance the skills of their workers.
• Would retain the low-income housing tax credit that encourages businesses to invest in affordable housing.
• Would preserve the R&D Tax Credit. 
• Would keep the tax-preferred status of private-activity bonds that are used to finance valuable infrastructure projects.
• Would protect the ability of small businesses to write off interest on loans, helping entrepreneurs start or expand a business, hire workers, and increase paychecks.
• Would modernize our international tax system so America's global businesses will no longer be held back by an outdated "worldwide" tax system that results in double taxation. 
• Would make it easier for U.S. businesses to bring home foreign earnings to invest in growing jobs and paychecks.
• Would end ObamaCare's provision requiring most Americans to buy health insurance or pay a penalty, beginning in 2019.
• Would eliminate the corporate alternative minimum tax, which the Senate added back to its plan at the last second to raise money. It would also increase the exemption from the individual AMT.
• The estate tax, or so-called death tax, would remain but the exemption from it would be doubled.
• The child tax credit would double to $2,000 per child from $1,000. It would be refundable up to $1,400 and start to phase out at $400,000 in income. This would end after 2025.
• Would limit state and local tax deductions. It would allow the deduction of up to $10,000 in state and local sales, income or property taxes.
• It will not change the mortgage interest deduction for existing homeowners. For new homes, taxpayers can deduct interest on up to $750,000 in mortgage debt, down from $1 million currently.
• Tax breaks for charitable contributions and retirement savings plans would remain.
• The bill would not include the controversial first in first out stock sales change, which sparked backlash in the investing community.