House Republicans Reveal Long-Awaited Tax Bill; Preserves 401Ks, Limits State and Local Tax
By Fox News // November 2, 2017
ABOVE VIDEO: American Action for Tax Reform President Douglas Holtz-Eakin on Republicans’ tax reform plan.
(FOX NEWS) – House Republicans on Thursday unveiled their long-awaited tax bill which preserves the popular 401K retirement account, lowers rates for many individual households but trims deductions for state and local taxes.
A summary of the plan, which was made available to reporters ahead of its public release, would also reduce the cap on the popular deduction to interest on mortgages to $500,000 for newly purchased homes. The current cap is $1 million.
The plan also limits the deductibility of local property taxes to $10,000 while eliminating the deduction for state income taxes. Republicans in high-tax states such as New York and New Jersey had come out strongly against it.
“I view the elimination of the deduction as a geographic redistribution of wealth, picking winners and losers,” New York Republican Rep. Lee Zeldin said. “I don’t want my home state to be a loser, and that really shouldn’t come as any surprise.”
Called the Tax Cuts and Jobs Act, the GOP plan would also leave the top individual tax rate at 39.6 percent.
The child tax credit will rise to $1,600 from $1,000, though the $4,050 per child exemption would be repealed.
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