Republicans release tax overhaul plan

WASHINGTON—House Republicans unveiled the long-awaited text of their tax reform bill Thursday, vowing to restructure the U.S. tax code by year’s end. The bill, drafted in the House Ways and Means Committee, is 429-pages long. The Tax Cuts and Jobs Act would reduce the number of tax brackets from seven to four—an earlier framework had only three brackets. The new tax rates are 12 percent, 25 percent, 35 percent, and 39.6 percent for top earners. House Speaker Paul Ryan, R-Wis., claimed a middle-class family of four making $59,000 per year would see a $1,182 reduction. The tax bill proposes a permanent corporate tax rate of 20 percent, down from the current 30 percent rate. It also would repeal the estate tax after a six-year delay. The overall plan costs $1.51 trillion over the next decade. That will be a flashpoint for many conservatives who want reforms included to offset the revenue reduction. Another hard selling point is how the bill treats state and local deductions. The bill caps the local property tax deduction at $10,000 and eliminates the deduction for state income taxes to help pay for the lower federal rates. Republicans in high-tax states such as New York and New Jersey have already criticized the provision. But the bill’s release marks the start, not the end, of debate on tax reform. The House Ways and Means Committee plans to mark up the legislation next week, and Chairman Kevin Brady, R-Texas, said he wants to have a bill for President Donald Trump to sign before the end of 2017.