Category: Tax Cuts And Job Act
The Tax Cuts and Job Act: A Balanced Review
We know that many people are curious about the tax bill announced in the House of Representatives yesterday, H.R.1: The Tax Cut and Jobs Act. We’ve put together a balanced review of the bill, and wanted to share it in a timely way. The proposed bill: Condenses individual tax rates to Zero, 12%, 25%, 35%, and 39.6%. Increases the standard deduction from $6,350 to $12,000 for individuals and from $12,700 to $24,000 for married couples. Establishes a new Family Credit, which includes expanding the Child Tax Credit from $1,000 to $1,600 to help parents with the cost of raising children, and providing a credit of $300 for each parent and non-child dependent to help all families with their everyday expenses. Preserves the Child and Dependent Care Tax Credit to help families care for their children and older dependents such as a disabled grandparent who may need additional support. Preserves the Earned Income Tax Credit to provide tax relief for low-income individuals and families. Streamlines higher education benefits to simplify the existing tax code. It also eliminates the student loan interest deduction. Continues the deduction for charitable contributions so people can continue to donate to their local church, charity, or community organization. Preserves the home mortgage interest deduction for existing mortgages and maintains the home mortgage interest deduction for newly purchased homes up to $500,000. Prior law capped the purchase price at
Virteom