Searching for smart, safe news you can TRUST?

Support safe, smart, REAL journalism. Sign up for our Axios AM & PM newsletters and get smarter, faster.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Searching for smart, safe news you can TRUST?

Support safe, smart, REAL journalism. Sign up for our Axios AM & PM newsletters and get smarter, faster.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Minneapolis-St. Paul

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa-St. Petersburg news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa-St. Petersburg

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

The GOP tax plan framework will be released today. Photo: J. Scott Applewhite/AP

The Trump administration and congressional Republicans are releasing the framework of a tax plan that substantially lowers most individual and corporate tax rates. While it includes some key policies — like the elimination of the deduction for state and local taxes — it leaves many crucial details to congressional committees to fill in.

What's next: Now that this plan is on paper, the blowback is going to be intense. Everyone has a stake in the tax reform fight, and everyone is going to be very loud about what they want.

Here are more details about the plan, per senior administration officials.

Individual tax reform:

  • Creates three tax brackets — 12 percent, 25 percent and 35 percent — and gives the option for congressional committees to add a fourth rate on the highest earners. Doesn't define the income ranges to which these rates apply.
  • Currently, there are seven individual rate brackets ranging from 10 percent to 39.6 percent.
  • Almost doubles the standard deduction to $12,000 for a single person and $24,000 for a married couple.
  • Increases the child tax credit to something "substantially higher" than the current $1,000 per child. Increases the income level at which the credit phases out.
  • Creates a $500 tax credit for non-child dependents.
  • Repeals the alternative minimum tax.
  • Repeals the personal exemption.
  • Eliminates most itemized deductions, but keeps those for mortgage interest and charitable contributions.
  • Repeals the estate tax.
  • Eliminates state and local tax deduction.

Corporate tax reform:

  • Maximum small business rate of 25 percent. Right now, it's generally taxed at the individual level.
  • 20 percent corporate rate. Currently, it's 35 percent.
  • Repeals the corporate alternative minimum tax.
  • Allows businesses to immediately write off the cost of new investments over five years.
  • Partially limits interest deductibility.
  • Keeps the research and development tax credit, along with the low income housing credit.

International tax reform:

  • Moves to a "territorial system," which doesn't tax business profits made outside the country.
  • As a transition, there will be a one-time tax on profits accumulated overseas. Higher rate for cash profits than liquid assets, but doesn't say what the rates are.

Go deeper

Updated 25 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Health: The good and bad news about antibody therapies.
  2. World: Belgium imposes lockdown, citing "health emergency" due to influx of cases.
  3. Economy: Conference Board predicts economy won’t fully recover until late 2021.
  4. Education: Surge threatens to shut classrooms down again.
  5. Technology: The pandemic isn't slowing tech.
  6. Travel: CDC replaces COVID-19 cruise ban with less restrictive "conditional sailing order."
  7. Sports: High school football's pandemic struggles.
  8. 🎧Podcast: The vaccine race turns toward nationalism.
Ina Fried, author of Login
1 hour ago - Technology

Federal judge halts Trump administration limit on TikTok

Illustration: Aïda Amer/Axios

A federal judge on Friday issued an injunction preventing the Trump administration from imposing limits on the distribution of TikTok, Bloomberg reports. The injunction request came as part of a suit brought by creators who make a living on the video service.

Why it matters: The administration has been seeking to force a sale of, or block, the Chinese-owned service. It also moved to ban the service from operating in the U.S. as of Nov. 12, a move which was put on hold by Friday's injunction.

4 hours ago - Podcasts

How hospitals are prepping for the new COVID-19 surge

Coronavirus cases and hospitalizations are surging, particularly in areas that had been largely spared this spring. One big question now is whether hospitals are better prepared for this new wave, including if they'll be able to continue providing elective services.

Axios Re:Cap digs into what hospitals have, and what they still need, with Lloyd Dean, CEO of CommonSpirit Health, one of America's largest operators of hospitals and health clinics.

Get Axios AM in your inbox

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!