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.

Published by mikebertelsen

Global market, trade, and financial news. I keep up to date with what I assess is important.

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