new tax plan

House GOP leadership unveils the new tax bill.

Here’s some highlights of the bill:

• 20% corporate tax rate will be permanent
• Child tax credit goes to $1600 from $1000
• Phases out the estate tax in 6 years
• Property tax deduction up to $10,000
• A cap on the mortgage interest deduction at $500,000 for a newly purchased home
• The tax rate at 39.6% for a million dollar or more income

The discussion on CNBC was vibrant. Larry Kudlow said it’s a sloppy bill. The 28% rate goes to 25%, the 15% to 12%, but the 33% rate goes to 35%.

The bill immediately doubles the estate tax exemption.

Tom Perez, former Wells Fargo CEO, said it’s a winner for the middle class. It also will help stabilize the economy. It has an immediate write-off of capital goods. He said it will start a boom in productivity.

There is a strong correlation of strong productivity and wage growth. That’s a key point.

Kudlow said there hasn’t been a capital investment in fifteen years. Growth will benefit everyone.

Perez mentioned that the estate tax elimination will be a political hot potato. Will the total elimination survive? He was doubtful.

So, it’s out. Let the discussion and politics begin.

CNBC was the source for this post.