You are using an older browser version. Please use a supported version for the best MSN experience.

What the Republican Tax Plan Means for You

The Wall Street Journal logo The Wall Street Journal 11/2/2017 Richard Rubin, Jon Hilsenrath
a close up of a device© Daniel Acker/Bloomberg News

After months of internal debate among Republicans, the House Ways and Means Committee released the details of its plan to overhaul the U.S. tax code for businesses and individuals. The highlights include lower rates for many individual households but not the highest earners; fewer individual tax brackets; a larger standard deduction for households who don’t itemize their tax bills; trimmed-back deductions for state and local taxes; eventual repeal of the estate tax; and much lower rates for corporate profits and profits for individuals on unincorporated business income. Here is a look at all of the details.

Get news and analysis on politics, policy, national security and more, delivered right to your inbox

Tax treatment for the wealthy is among the hottest issues. The House Republican tax plan will preserve a top individual tax rate of 39.6%. Republicans last year had been discussing a top rate of 33%, and then moved to 35% earlier this year.

The retention of the 39.6% individual tax rate marks a shift in the way Republicans think about tax policy. For years, they had focused on driving down that top tax rate. President Trump says he is instead focused on middle-income cuts and large changes to the business tax code, which he argues will boost growth and hiring.

House Republicans had planned to release the bill Wednesday but delayed it until Thursday to finish technical work on the legislation and address thorny issues such as how to treat deductions for state and local taxes. Party leaders want to repeal the deduction, but that has sparked a rebellion from lawmakers in high-tax states like New York and New Jersey and set off a scramble for compromise, centered on keeping the deduction for property taxes.

Write to Richard Rubin at richard.rubin@wsj.com and Jon Hilsenrath at jon.hilsenrath@wsj.com

Related video from WSJ: What's Weighing on Trump's Weak Poll Numbers

UP NEXT
UP NEXT
AdChoices
AdChoices

More from The Wall Street Journal

The Wall Street Journal
The Wall Street Journal
image beaconimage beaconimage beacon