House GOP releases sweeping tax overhaul plan

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House GOP releases sweeping tax overhaul plan
The tax overhaul is Republicans’ top priority ahead of next year’s elections, and lawmakers are desperate for a victory after the Obamacare repeal failed.
By BRIAN FALER
11/02/2017 10:26 AM EDT

House Republican leaders unveiled a tax plan Thursday that would make sweeping changes in corporate and individual taxes, including deep tax cuts, limits to the mortgage interest deduction and bigger family tax credits.

It also includes provisions that are likely to stoke controversy and fierce lobbying, including limiting the deduction of mortgage interest for newly purchased homes up to $500,000, according to a summary.

On two other flash points, the plan would “retain” 401(k) savings plans and “allow people to write off the cost of state and local property taxes up to $10,000.”

The plan would slash the corporate tax rate to 20 percent and create three new individual tax brackets of 12%, 25%, and 35%. It would maintain a 39.6 percent rate on top earners and boosts the child tax credit to $1,600.

It would also double the exemption for the estate tax and repeal it after six years.

The unveiling of the legislation kicks off what is likely to be a grueling slog to get legislation to President Donald Trump by the end of the year.

The proposal calls for the biggest rewrite of the code in a generation. Its cuts in tax rates on businesses and most individuals will come in exchange for killing scores of narrowly drawn tax breaks.

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