Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Details of an agreement among House and Senate Republicans emerged Wednesday—including rate cuts for corporations, individuals, and pass-through businesses. Here’s what tax negotiators have agreed to, according to lawmakers—and how the new plan differs from bills that passed both chambers earlier:

Corporate Rate

Joint Agreement: Cut the corporate rate to 21% from 35% beginning in 2018. House: Cut to 20% in 2018. Senate: Cut to 20% in 2019.

Top Individual Rate

Joint Agreement: Cut the top rate to 37% for the highest earners, down from 39.6%. House: Leave top rate at 39.6%. Senate: Cut top rate to 38.5%.

Pass-Through Tax Breaks

Joint Agreement: Provide a 20% deduction on pass-through business income, and extend that break to trusts as well as individuals. House: Tax such business income at a top rate of 25%, but service businesses like accounting and law firms wouldn’t be eligible. Provide a lower rate of 9% for some lesser-earning businesses. Senate: Provide a 23% deduction, with limitations related to taxable income and amount of wages paid.

Corporate Alternative Minimum Tax

Joint Agreement: Repeal it. House: Repeal it. Senate: Maintain it.

Obamacare Individual Mandate

Joint Agreement: Repeal it. House: No action. Senate: Repeal it by zeroing out the tax penalty for individuals who don’t purchase health insurance.

Mortgage Interest Deduction

Joint Agreement: Cap it at loans of $750,000—down from $1 million—for new purchases of homes. House: Cap it at loans of $500,000. Senate: No change.

Dig Deeper

T&R Express

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2018 ALM Media Properties, LLC. All Rights Reserved.