House Republicans are rolling out their big tax bill. House Speaker Paul Ryan said Republicans are fulfilling a longtime pledge to cut taxes. and the sweeping tax cuts will help the middle class. He noted that loopholes will be eliminated and said the complex federal tax code will be "cleaned up."
House Majority Leader Kevin McCarthy said a middle-income family of four would get tax cut of nearly $1,200 a year. Texas Republican Kevin Brady said the GOP tax plan will grow jobs because the corporate tax rate would drop from 35%-to-20%. He argued that the Republican bill will inspire U.S. corporations to keep jobs in the U.S.
Paul Ryan argued that the "world is passing this country by, and we're losing jobs and companies as a result" of the current tax system. Ryan says the Republican tax bill will leave 401(k)s unchanged.
The plan will repeal the death tax and tax small businesses at 25%. It will cap property tax deductions at $10,000 and eliminate deductions for state and local income tax. The plan establishes three tax brackets at 12, 25 and 35 percent, and also keeps a top rate of just over 39% for the highest-earners.
The plan just about doubles the standard deduction for middle-class families, putting it at $24,000 for married couples and $12,000 for individuals. The child tax credit jumps to $1,600 and it adds a $300 credit for each parent and non-child dependent.