Nov. 10, 2017
By Kelly Phillips Erb
Senate Republican leaders have now released their version of a tax bill, the Tax Cuts and Jobs Act.
You can review the Senate’s bill summary here and you can review the first version of the House bill here. (Links will download as a pdf). You can read my summary of the House plan here.
It would appear that there’s still some work to be done to reconcile the Senate and House bills. Here are the key differences (as well as similarities) between the two:
We currently have seven (7) tax brackets: 10%, 15%, 25%, 28%, 33%, 35%, and 39.6% (you can see the brackets for 2018 – absent reform – here).
- The House bill proposed four (4) tax rates: 12%, 25%, 35% and 39.6%.
- The Senate bill would keep seven (7) brackets and reduce the top marginal rate to 38.5%.