Republicans reveal tax change proposal | Arkansas Blog

Wednesday, September 27, 2017

Republicans reveal tax change proposal

Posted By on Wed, Sep 27, 2017 at 1:30 PM

Here's NBC on the Republican framework for tax "reform," which means tax cuts for the wealthy.

The plan includes long-held Republican goals of reducing the corporate tax rate and simplifying the tax code. It lowers the corporate tax rate to 20 percent and eliminates four income tax brackets. It doubles the standard deduction and increase the child tax credit. It also repeals the estate tax but keeps the deductions for mortgage interest and charitable giving, all tax breaks that tend to impact high-income tax payers. But it is expected to cost trillions of dollars and Republicans haven't yet presented a clear way to pay for it.
Bad news for Arkansas taxpayers who itemized deductions. No more deduction for the state income tax. That'll mean a tax increase for a lot of people. Charitable and mortgage deductions are preserved.

The bottom tax bracket rises from 10 percent to 12 percent, though the plan claims an increase in the standard deduction will make up for this tax increase on lower income people. The top rate drops from 39.5 to 35 percent.

Here's a link to full plan.

And, here, Think Progress takes an early run at explaining the pitfalls.

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