Here's the summary of the Senate tax plan
Here's what will be in the Senate tax plan. Photo: J Scott Applewhite / AP
The Senate tax plan will have key differences from the House tax bill, according to a two-page summary by the Finance Committee. It will preserve the current lowest tax rate of 10 percent and lift the child tax credit to $1,650, slightly higher than the House. It also preserves several popular tax deductions.
Why this matters: Like the House, the Senate will now work through the plan in committee to address member demands.
What the bill does:
- Expands the zero individual tax bracket while maintaining a lowest tax rate of 10 percent.
- Creates a 38.5 percent bracket for high earners.
- Increases standard deduction to $12,000 for individuals and $24,000 for married couples, like the House bill.
- Expands the child tax credit from $1,000 to $1,650 and lifts existing income caps.
- Keeps the adoption tax credit and the charitable contribution deduction.
- Maintains the mortgage interest deduction for homes up to $1 million.
- Preserves the medical expense deduction.
- Repeals the alternative minimum tax.
- Doubles the exemption from the estate tax.
- Permanently lowers corporate tax rate to 20 percent from 35 percent.
- Allows for full and immediate expensing of new equipment.