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President Trump and House Ways and Means Committee chairman Kevin Brady at a White House meeting. Photo: Evan Vucci / AP

The House GOP tax plan keeps the 39.6% tax-rate for the wealthiest Americans ($1 million income for married couples), caps the mortgage interest deduction for newly purchased homes at $500,000 (down from $1 million), and will allow only $10,000 of property tax to be deducted, according to a summary released this morning.

Why it matters: Lawmakers are finally seeing the full details of the proposal this morning. Already some Republicans had expressed concerns and powerful lobbying groups like homebuilders had expressed opposition.

What comes next: Ways and Means Chairman Kevin Brady told reporters this morning he expects an analysis of the bill from the Joint Committee on Taxation later today, but expects it will meet the goal of increasing the deficit by no more than $1.5 trillion.

Other details:

Individual taxes:

  • Increases standard deduction from $6,350 to $12,000 for individuals and $12,700 to $24,000 for married couples.
  • Individual tax rate brackets:25 percent rate starting at $90,000 for married couples, $45,000 for individuals (everyone below that pays a 12 percent rate).35 percent rate starting at $260,000 for married couples, $200,000 for individuals.39.6 percent rate starting at $1 million for married couples, $500,000 for individuals.
  • Expands the Child Tax Credit from $1,000 to $1,600 and provides a credit of $300 for each parent and non-child dependent.
  • Makes no changes to deductions for charitable contributions.
  • Elimination of student loan and medical expense deductions and the adoption tax credit.
  • Doesn't change contribution rules for 401(k)s.
  • Repeals the state and local tax deduction, but people can write off the cost of state and local property taxes up to $10,000.
  • Repeals the Alternative Minimum Tax.
  • Doubles the estate tax exemption immediately and repeals the tax in six years.

Business taxes:

  • Lowers corporate tax rate to 20% and lowers rate for pass-through entities (often small businesses that report taxes as individuals) to 25%.
  • There are two approaches to pass-through guardrails. The simple approach allows businesses to classify 70 percent of income as wages and 30 percent as income. The second option allows business owners to have more income classified as business income, rather than wages.
  • Interest deductibility capped at 30 percent of interest.

International taxes:

  • One-time tax on U.S. companies' repatriated foreign profits; 12 percent rate on cash and a 5 percent rate on illiquid investments, per the WSJ.
  • Eight year repatriation payout.

Go deeper:

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Senate Armed Services chair dismisses Trump threat to veto defense bill

Sen. Jim Inhofe. Photo: Anna Moneymaker/Pool/AFP via Getty Images

Sen. Jim Inhofe (R-Okla.), chair of the Senate Armed Services Committee, told reporters Wednesday that he plans to move ahead with a crucial defense-spending bill without provisions that would eliminate tech industry protections, defying a veto threat from President Trump.

Why it matters: Inhofe's public rebuke signals that the Senate could have enough Republican backing to override a potential veto from Trump, who has demanded that the $740 billion National Defense Authorization Act repeal Section 230 of the Communications Decency Act.

Scoop: Uber in talks to sell air taxi business to Joby

Illustration: Sarah Grillo/Axios

Uber is in advanced talks to sell its Uber Elevate unit to Joby Aviation, Axios has learned from multiple sources. A deal could be announced later this month.

Between the lines: Uber Elevate was formed to develop a network of self-driving air taxis, but to date has been most notable for its annual conference devoted to the nascent industry.

Setting the Biden-era cybersecurity agenda

Illustration: Annelise Capossela/Axios

The Biden administration will face a wide array of cybersecurity challenges but can take meaningful action in at least five key areas, concludes a new report by the Aspen Cybersecurity Group.

Why it matters: Cybersecurity policy is a rare refuge from Washington's hyperpartisan dysfunction, as shown by the recent work of the bipartisan Cyberspace Solarium Commission. President-elect Joe Biden should have a real opportunity to make progress on shoring up the nation's cybersecurity and cyber capabilities without bumping up against a likely Republican-controlled Senate.