The House Tax Bill - What Will You Pay and Other Details

The bottom line, how much can you make before you are taxed:

Single Taxpayer: 
Now, $10,400.00 
Under this bill, $14,700.00 ($12,200.00 + $2500.00 due to $300.00 Credit)

Married Couple:
Now, $20,800.00
Under this bill, $26,900.00 ($24,400.00 + $2500.00 due to $300.00 Credit)

Married Couple With Two Children:
Now, $28,900.00
Under this bill,  $53,578.00 ($24,400.00 + $2500.00 due to $300.00 Credit + $26,678.00 due to child tax credits)

Married Couple With Four Children:
Now, $28,900.00
Under this bill, $80,256.00 ($24,400.00 + $2500.00 due to $300.00 Credit + 53,356.00 due to tax credits)

After these amounts, you begin being taxed at 12% - but at these income levels many people will end up being taxed at 15% under current tax laws.


First of all remember this: 50% of Americans pay no income tax whatsoever under the current system.  In fact many, actually get money from the government.  This has resulted in massive fraud.  Under this bill, those who pay no tax would no longer be allowed to claim tax credits in excess of what the owe.  Much opposition centers on this issue.


The House bill consolidates those into four brackets:

12% (up to first $45,000 of taxable income for individuals; $90,000 for married couples filing jointly)

25% (over $45,000 to $200,000 for individuals; over $90,000 to $260,000 for married couples)

35% (over $200,000 to $500,000 for individuals; over $260,000 to $1 million for married couples)

39.6% (over $500,000 for individuals; over $1 million for married couples)

There is also a 6% surtax or “bubble rate” that applies to adjusted gross income over $1 million ($1.2 million for couples)

Household Exemptions and Credits

Doubles the standard deduction: The bill raises today’s standard deduction for singles to $12,200 from $6,350 currently; and it raises it for married couples filing jointly to $24,400 from $12,700.

Eliminates personal exemptions: Today you’re allowed to claim a $4,050 personal exemption for yourself, your spouse and each of your dependents. The House bill eliminates that option.

Expands child tax credit: The bill would increase for five years the child tax credit to $1,600, up from $1,000, for any child under 17.  But that $600 increase won’t be available to the lowest-income families if they don’t end up owing federal income taxes.  The bill would let more people claim the child tax credit - raises the cut off to $230,00.00 for married parents.

Creates a new $300 family tax credit: Taxpayers may claim a $300 non-refundable tax credit for themselves as well as any non-child dependent — for instance, a son or daughter over 17 whom you’re supporting, an ailing elderly mother or an adult child with a disability.  The family credit would expire after five years (although it is quite likely to be renewed).

Home Ownership: The bill preserves the mortgage deduction as is for existing mortgages. But for newly purchased homes, you would only be able to claim a deduction for interest you pay on mortgage debt up to $500,000, down from $1 million today.  Preserves an itemized property tax deduction for property taxes but only up to $10,000.  Note that with the doubling of the personal deduction, few homeowners will benefit from these deductions.

Repeals the estate (death) tax: The estate tax today affects just 0.2% of all estates, and only those with more than $5.49 million in assets (or $10.98 million if you leave a spouse behind).  This will mean that hiers will no longer have to sell farms and other family businesses in order to pay the tax.  These business are most often either liquidated or sold to large corporations.

Corporate Taxes:

Lowers corporate tax rate: The bill would permanently cut the corporate rate to 20% from 35% (literally the highest in the entire world).  There is little question that this high tax rate is costing is jobs.

Creates territorial tax system: The House GOP bill would switch corporate taxation to a territorial system. That way, American companies would owe U.S. tax only on what they earn here. Their offshore profits would only be taxed by the country where the money is made.  The current system, that taxes corporations on income generate both domestically and overseas is unique in the world and definately cost the U.S. jobs and companies flee the country.