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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2 hours ago - Sports

Pac-12 will play football this fall, reversing course

A view of Levi's Stadium during the 2019 Pac-12 Championship football game. Photo: Alika Jenner/Getty Images

The Pac-12, which includes universities in Arizona, California, Colorado, Oregon, Utah and Washington state, will play football starting Nov. 6, reversing its earlier decision to postpone the season because of the coronavirus pandemic.

Why it matters: The conference's about-face follows a similar move by the Big Ten last week and comes as President Trump has publicly pressured sports to resume despite the ongoing pandemic. The Pac-12 will play a seven-game conference football season, according to ESPN.

Dave Lawler, author of World
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Global coronavirus vaccine initiative launches without U.S. or China

Data: Gavi, The Vaccine Alliance; Map: Naema Ahmed/Axios

A global initiative to ensure equitable distribution of coronavirus vaccines now includes most of the world — but not the U.S., China or Russia.

Why it matters: Assuming one or more vaccines ultimately gain approval, there will be a period of months or even years in which supply lags far behind global demand. The COVAX initiative is an attempt to ensure doses go where they're most needed, rather than simply to countries that can produce or buy them at scale.

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Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 6:15 p.m. EST: 32,062,182 — Total deaths: 979,701 — Total recoveries: 22,057,268Map.
  2. U.S.: Total confirmed cases as of 6:15 p.m EST: 6,967,103 — Total deaths: 202,558 — Total recoveries: 2,670,256 — Total tests: 97,459,742Map.
  3. Health: Cases are surging again in 22 states — New York will conduct its own review of coronavirus vaccine.
  4. Business: America is closing out its strongest quarter of economic growth.
  5. Technology: 2020 tech solutions may be sapping our resolve to beat the pandemic.
  6. Sports: Here's what college basketball will look like this season.
  7. Science: During COVID-19 shutdown, a common sparrow changed its song.

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