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

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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 2 hours ago - Health

California surpasses 50,000 COVID-19 deaths

A man prepares a funeral arrangement in in Los Angeles, California, Feb. 12. Photo: Mario Tama/Getty Images

California's death toll from COVID-19 surpassed 50,000 on Wednesday, per Johns Hopkins data.

The big picture: It's the first state to record more than 50,000 deaths from the coronavirus.

3 hours ago - Technology

Facebook bans Myanmar military

A protester holds a placard with a three-finger salute in front of a military tank parked aside the street in front of the Central Bank building during a demonstration in Yangon, Myanmar. Photo by Aung Kyaw Htet/SOPA Images/LightRocket via Getty Images

Facebook said on Wednesday it would ban the rest of the Myanmar military from its platform.

The big picture: It comes some three weeks after the military overthrew the civilian government in a coup and detained leader Aung San Suu Kyi, causing massive protests to erupt throughout the country. Military leaders have been using internet blackouts to try to maintain power in light of the coup.

It's harder to fill the Cabinet

Data: Chamberlain, 2020, "United States of America Cabinet Appointments Dataset" Chart: Will Chase/Axios

It's harder now for presidents to win Senate confirmation for their Cabinet picks, an Axios data analysis of votes for and against nominees found.

Why it matters: It's not just Neera Tanden. The trend is a product of growing polarization, rougher political discourse and slimming Senate majorities, experts say. It means some of the nation's most vital federal agencies go without a leader and the legislative authority that comes with one.

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