Nov 9, 2017

House GOP tweaks final tax bill

Chairman Kevin Brady released changes to the tax bill. Photo: J. Scott Applewhite/AP

House Republicans are keeping the adoption tax credit and changing a provision on small businesses to shore up support for the bill, according to a new amendment released by Ways and Means Chairman Kevin Brady.

Why it matters: Brady is changing parts of the bill that had faced the strongest opposition from other Republicans.

What the new manager's amendment to the tax bill does:

  • Creates a new 9 percent tax rate — rather than the normal 12 percent rate — for the first $75,000 in income of businesses making less than $150,000 through a pass-through business. The rate is reduced for businesses making between $150,000 and $225,000, where it phases out. The lower rate is phased in over five years.
  • Keeps the adoption tax credit, which the original tax bill repealed.
  • Allows families with disabled children to move extra assets from a tax-advantaged savings account into an ABLE account.
  • Makes clear that military families will be allowed to deduct moving expenses.
  • Reduces corporate tax rate by lowering 80-percent dividends received deduction to 65 percent. Lowers the 70-percent dividends received deduction to 50 percent.
  • Gives an exclusion to the limit on deductibility of business interest for taxpayers who paid or accrued interest on "floor plan financing indebtedness."
  • Increases repatriation rate on foreign income to a 7 percent rate for illiquid assets (up from 5 percent) an 14 percent on liquid assets (up from 12 percent).

Go deeper:

Go deeper

Coronavirus updates: Market ends worst week since financial crisis

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC, and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens.

The stock market ended its worst week since the financial crisis, prompting the Fed to release a statement. Meanwhile, the WHO warned that countries are losing their chance to contain the novel coronavirus and raised its global risk assessment to "very high" Friday.

The big picture: COVID-19 has killed more than 2,860 people and infected more than 84,000 others in over 60 countries and territories outside the epicenter in mainland China. The number of new cases reported outside China now exceed those inside the country.

Go deeperArrowUpdated 9 hours ago - Health

California coronavirus: Latest case has no recent history of international travel

Gov. Gavin Newsom. Photo: Kevork Djansezian/Getty Images

A new case of the novel coronavirus in California was announced on Friday after Gov. Gavin Newsom said Thursday that 33 people had tested positive for the virus, noting the risk to the public remains low.

What's new: An adult woman with chronic health conditions in Santa Clara County who "did not recently travel overseas" or come into contact with anyone known to be ill was confirmed to have contracted the coronavirus on Friday by CDC and California Department of Public Health officials.

Go deeperArrowUpdated 9 hours ago - Health

Big video game conference delayed amid coronavirus concerns

Photo: GDC

Next month's Game Developers Conference in San Francisco became the latest tech event to be cancelled or postponed amid growing concerns over the spread of the novel coronavirus.

The big picture: A growing number of events are being scrapped, including Mobile World Congress and Facebook's F8 developer conference. Some, like the giant SXSW event in Austin, insist they are moving forward.