BREAKING: Republicans Finally Release Tax Bill – and Its a Doozy [VIDEO]

The House Republicans unveiled their tax bill today that everyone has been waiting and waiting for. It evidently preserves the popular 401K retirement account, lowers rates for many individual households, but trims deductions for state and local taxes. They are touting it as a massive relief bill for the Middle Class. I hope that is true. In the summary of the plan, it would also reduce the cap on the popular deduction for interest on mortgages to $500,000 for newly purchased homes. The current cap is $1 million.

In the new plan, the deductibility of local property taxes will be limited to $10,000. The deduction of state income taxes would be eliminated. This is going to hit Republicans in high-tax states such as New York and New Jersey hard. I’m sure they are unhappy with that development. “I view the elimination of the deduction as a geographic redistribution of wealth, picking winners and losers,” New York Republican Rep. Lee Zeldin said. “I don’t want my home state to be a loser, and that really shouldn’t come as any surprise.”

It’s called the Tax Cuts and Jobs Act. The top individual tax rate will remain at 39.6 percent. The child tax credit will rise to $1,600 from $1,000, though the $4,050 per child exemption would be repealed. This is the first real retooling of the tax code in over three decades… since Reagan was in office. It has been a legislative and political priority of Republicans. “This is the beginning of the end of this horrible tax code in America,” Rep. Kevin Brady told Fox News. I’ll believe that when I see it.

You see, I’m still enamored with the Ted Cruz plan that would have had us filing on a post card and would have eliminated the IRS, replacing it with a filing agency that was very small. But I’ll take what I can get for right now. The rollout was delayed for a day as specifics were hammered out. A terrorist attack in New York didn’t help either. Politicians had been at each other’s throats over contribution limits to 401(k) retirement accounts and the possible elimination of a tax break for state and local taxes. Evidently, they compromised.

There was an uproar when rumors swept the media that Republicans were considering a plan to slash pretax donation limits from $18,000 for most people to as low as $2,400. That didn’t happen as far as I can tell. Trump is scheduled to meet with House Republicans this afternoon and he will be pleased with this. Markups to the bill could come as early as Monday.

The House Ways and Means Committee plans to consider the bill next week. “This is our opportunity to make tax reform a reality and deliver the most transformational tax cuts in a generation,” Brady said on Thursday. House Majority Leader Rep. Kevin McCarthy, R-CA, said Thursday that “for every member, this could be the most significant bill they make a decision on in Congress.” Trump has recently said he’d like to see the bill become law by Christmas. That would be a nice present for a change.

Terresa Monroe-Hamilton

Terresa Monroe-Hamilton is an editor and writer for Right Wing News. She owns and blogs at NoisyRoom.net. She is a Constitutional Conservative and NoisyRoom focuses on political and national issues of interest to the American public. Terresa is the editor at Trevor Loudon's site, New Zeal - trevorloudon.com. She also does research at KeyWiki.org. You can email Terresa here. NoisyRoom can be found on Facebook and on Twitter.

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