Tax Cuts and Jobs Act (H.R. 1)
This law was last updated on Jan 2, 2018
H.R 1 would amend the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses. The tax plan also includes fetal personhood language.
According to the House summary:
With respect to individuals, the bill:
- replaces the seven existing tax brackets (10%, 15%, 25%, 28%, 33%, 35%, and 39.6%) with four brackets (12%, 25%, 35%, and 39.6%),
- increases the standard deduction,
- repeals the deduction for personal exemptions,
- establishes a 25% maximum rate on the business income of individuals,
- increases the child tax credit and establishes a new family tax credit,
- repeals the overall limitation on certain itemized deductions,
- limits the mortgage interest deduction for debt incurred after November 2, 2017, to mortgages of up to $500,000 (currently $1 million),
- repeals the deduction for state and local income or sales taxes not paid or accrued in a trade or business,
- repeals the deduction for medical expenses,
- consolidates and repeals several education-related deductions and credits,
- repeals the alternative minimum tax, and
- repeals the estate and generation-skipping transfer taxes in six years.
For businesses, the bill:
- reduces the corporate tax rate from a maximum of 35% to a flat 20% rate (25% for personal services corporations),
- allows increased expensing of the costs of certain property,
- limits the deductibility of net interest expenses to 30% of the business’s adjusted taxable income,
- repeals the work opportunity tax credit,
- terminates the exclusion for interest on private activity bonds,
- modifies or repeals various energy-related deductions and credits,
- modifies the taxation of foreign income, and
- imposes an excise tax on certain payments from domestic corporations to related foreign corporations.
The bill also repeals or modifies several additional credits and deductions for individuals and businesses.
Additional coverage of the bill, reported by Rewire, can be found here.
Fetal Personhood Provision
The bill would extend federal benefits to fetuses by designating “unborn children” as beneficiaries in 529 college savings plans.
As reported by Rewire:
The change appears to be politically motivated. Expectant parents already can put a 529 plan in their own name and switch the beneficiary when their child is born. That’s because 529 plans require the beneficiary’s social security number, which fetuses don’t have.
The bill defines unborn child as a “child in utero”—”a member of the species homo sapiens, at any stage of development, who is carried in the womb.’’
Passed the House on November 16, 2017, by a 227-205 vote.
Passed the Senate with amendments on December 2, 2017, by a 51-49 vote.
While in the Senate, the fetal personhood provision was stripped from the bill for violating the Byrd rule.
- Devin Nunes
- David Reichert
- Erik Paulsen
- Tom Reed
- Patrick Meehan
- Carlos Curbelo
- Patrick Tiberi
- Peter Roskam
- Adrian Smith
- Mike Bishop
- Kristi Noem
- James Renacci
- George Holding
- Tom Rice
- Jackie Walorski
- Jason Smith
- Kenny Marchant
- Mike Kelly
- David Schweikert
- Sam Johnson
- Lynn Jenkins
- Diane Black
- Vern Buchanan
- Paul Ryan