Details of the House GOP Tax Plan

This morning, the office of House Speaker Paul Ryan released a blueprint for tax reform that would overhaul major components of the U.S. tax code and lower taxes for households and businesses. The key details of the plan are listed below:

Individual Income Tax Changes

• Consolidates the current seven tax brackets into three, with rates of 12 percent, 25 percent, and 33 percent (see table below).
• Provides a 50 percent deduction of capital gains, dividends, and interest income. This is equivalent to taxing capital gains, dividends, and interest income at half the marginal rates of ordinary income: with three brackets of 6 percent, 12.5 percent, and 16.5 percent.
• Increases the standard deduction from $6,300 to $12,000 for singles, from $12,600 to $24,000 for married couples filing jointly, and from $9,300 to $18,000 for heads of household.
• Eliminates the personal exemption.
• Creates a $500 non-refundable credit for dependents who are not children.
• Increases the child tax credit to $1,500 per child, the first $1,000 of which is refundable, as under current law.
• Raises the phaseout threshold for the child tax credit for married households from $110,000 to $150,000.
• Eliminates all itemized deductions besides the mortgage interest deduction and the charitable contribution deduction.
• Eliminates the individual alternative minimum tax.

https://taxfoundation.org/details-house-gop-tax-plan