GOP considering keeping top tax rate of 39-40% for income $1 million and up, finally. I assume this would be for the single bracket, so it would hit married at $2 million since Trump wants to do away with the marriage penalty.
This is the one thing they needed from the start. Maybe it was their goal all along to propose idiotic ideas to enrage the entire middle class, so that when they did something the slightest bit reasonable to not benefit the super wealthy, it would pass with flying colors.
Still a disproportionate tax cut for the wealthy-but-not-super-wealthy (individuals under $1 million). Not much of a tax cut for the super wealthy. This combined with a halfway compromise on state and local deductions should be able to pass through Congress. Touch 401k or mortgage deduction at all, and it will fail.
Ultimately, should end up with something like this for tax reform:
Corporate tax rate of 20%, down from 35%.
Small businesses/pass-throughs taxed 25% max, down from 39-40%.
Corporate taxes lower when bringing foreign cash to U.S.
Single brackets of 12% up to $40k, 25% up to $300k, 35% up to $1mm, 39-40% over $1mm, exactly double brackets for married.
No AMT.
Estate/death tax threshold raised (probably can’t get away with eliminating entirely).
More childcare credits.
Double standard deductions, but state and local itemized deductions cut in half and no personal exemptions.
Nothing else notable changed.
This will likely be bad for the economy long term. But more money in our pockets as long as we can keep jobs when the recession hits.