Here’s the short summary of the House tax cut bill from 538’s significant digits morning email.
House Republicans have released their tax cut plan. Businesses benefit the most, with about $1 trillion in tax cuts coming from a reduction in the corporate rate cut, and another half trillion coming on the individual side through a realignment of tax brackets, the elimination of the alternative minimum and estate taxes, and an increase to the standard deduction. To pay for this, the bill caps the deduction for state and local taxes, limits the mortgage interest deduction, and gets rid of tax breaks for student loan interest, adoption, medical expenses and more. [The New York Times]
The referenced NY Times report, Republican Plan Delivers Permanent Corporate Tax Cut, covers the main points of the bill. Among the real gems is the repeal of the estate tax. Let’s call that one the Trump Family Amendment.
The proposal will double the estate tax exemption to roughly $11 million, from $5.49 million, meaning families can avoid paying taxes on large inheritance. And it eventually repeals the estate tax altogether, phasing it out entirely in six years.
Of course, living in Arizona, a state fond of its taxes cut by a simple majority but only increased by a 2/3 vote, you know the significance of the “Permanent Corporate Tax Cut.” Once cut, the American people will forget its history and instead of a restoration they will see any attempt to repeal the tax cut as a tax increase. America is teetering on the edge of impoverishing itself for all time to come.