Senate leaders released their outline of a tax reform plan just as the House Ways and Means Committee was finishing up its version.
According to what the Senators released Friday, their tax plan would:
- Tax income on small business pass-through entities at 25 percent;
- Lower the corporate tax rate from 35 percent to 20 percent but delay it until 2019;
- Cut the tax rate of individual income tax brackets to 10 percent, 12 percent, 22.5 percent, 25 percent, 32.5 percent, 35 percent and 38.5 percent (thresholds for each bracket aren’t yet available);
- Completely repeal the state and local tax deduction;
- Maintain the medical expense deduction;
- Maintain the existing home-mortgage interest deduction;
Ways and Means has sent its bill to the full House for a floor vote that could come as early as next week. Bloomberg news has put together a side-by-side comparison of the House and Senate plans.