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Senate releases tax proposal

The Senate tax proposal is out. Photo: Susan Walsh/AP

The Senate tax proposal is out, along with a Joint Committee on Taxation analysis estimating it will add $1.495 trillion to the deficit over the next decade.

What we're watching: Member reaction. The Senate can only afford to lose two GOP votes to pass the bill.

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Notable provisions:

  • 7 income tax brackets: 10, 12, 22.5, 25, 32.5, 35, and 38.5 percent
  • Repeal of personal exemption
  • $1,650 child tax credit
  • Repeal of deduction for state and local taxes
  • Pass throughs: An individual taxpayer can deduct 17.4 percent of domestic qualified business income from a partnership, S corporation or sole proprietorship. Most service businesses are excluded.
  • 20 percent corporate rate beginning in 2019
  • Repatriation rates of 5 percent for illiquid assets, 10 percent for liquid

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