After weeks of late night revisions and rushed votes, congressional Republicans have passed the final version of the Tax Cuts and Jobs Act. Here are a few of the most egregious aspects of the bill that made the final cut:
- The #CorkerKickback.
- This provision would allow income on real estate LLCs to be taxed at a lower rate. It was added during the reconciliation process, and Sen. Bob Corker (R-TN), who was previously a ‘no’ vote, changed his mind following it’s inclusion. It could save the senator up to $1 million in taxes.
- Limiting of the SALT deduction.
- Taxpayers will only be able to deduct up to $10,000 in state and local income taxes and property taxes. Over 4.1 million Americans across the country pay more than $10,000 in property taxes.
- Doubling of the estate tax exemption.
- Although Trump campaigned on a promise to remove the tax altogether, the bill doubles the exemption, with estates worth $11 million for a single person, or $22 million for a couple, now being subject to the tax.
- Repeal of the individual mandate.
- In order to produce $300 billion to offset the costs of tax cuts for the wealthy, the Republicans have included a repeal of the individual mandate. Around 13 million people will be without healthcare as a result, according to estimates from the Congressional Budget Office.
- Changes to the Child Tax Credit (CTC).
- The CTC was doubled from $1,000 to $2,000, and its refundability was increased from $1,100 to $1,400. 1 in 3 American children in working-class households would see only a partial increase in their CTC refund, while households making $500,000 a year are now phased in.
- Top individual tax rate is lowered.
- The top bracket, which previously paid taxes at a rate of 39.6%, will see their rate go down to 37%.
- Corporate tax rate is decreased.
- The corporate tax rate has been slashed from 35% to 21%. While Republicans state this will bring jobs back to the U.S., corporate executives say it will lead to buying back shares and increased dividends.
All that’s left for this historically unpopular, $1.5 trillion bill to become law is a signature from the President. It will be Trump’s first major piece of legislation, and quite possibly the undoing of the Republican party come November 6, 2018.
