The Republicans have unveiled details of a controversial tax plan, the slashing target prices for the companies and the reduction in inheritance tax.
The proposal would lower the corporate tax rate from 35% to 20%, while maintaining the top individual tax rate for the richest up to 39.5%.
But it is a more popular mortgage eliminated the interest deduction for new home loan of $500,000 (£380,000) or more.
The provision in the plan is a priority for the Republicans and the President.
Republicans said the law, the estimates amount to about $1.5 tn in cuts over a decade, was the transformation.
You say it is the US companies more competitive and simplify the tax-filing process for the average American family.
“This is our chance to ensure that future generations get just before you get, in this country,” House of Representatives Speaker Paul Ryan said.
The most expensive part of the plan, the reduction of the corporate rate is even lower turnover of almost estimated $1.5 tn.
But the Republicans are selling the bill as a “relief” for ordinary Americans.
She said the changes will save the average American family of four about $1,182 on your tax debt.
President Donald Trump called it a “big, beautiful Christmas gift” for families.
Details of the plan
The standard deduction – which makes the submission easier for some people 6,350 increases from $to $ 12,000 for individuals and $12,700 $24,000 for married couples
Children’s free allowance will be expanded from $1,000 to $1,600 per child
Federal deductions for state and local income and sales tax is eliminated
Local property tax deducted from income, but a maximum of $10,000 can be made by the Federal
Exemption from the tax on almost $11.2 m, up from $5.49 m, and is eliminated doubled by 2024
Profits of the company from overseas will not be taxed, but at least 10% tax is on US and foreign subsidiaries
Alternative Minimum Tax ensures that the rich avoid taxes by taking advantage of the exemption amounts, are hereby repealed
To limit in spite of speculations, there is no change, 401k retirement savings-tax contributions, or the deduction for charitable contributions.
The bill proposes to double-click the standard deduction on up to $12,000 for individuals and $24,000 for couples. Heads of households would be able to deduct $18,000.
In exchange, the plan – specific benefits-such as deductions for moving, medical costs and many local and state taxes.
Democrats say the plan favors the corporations and the rich.
Representative Nancy Pelosi, who leads Democrats in the house, slammed the bill as “half-baked” and said it would shift more taxes on the funds.
To win, President Donald Trump, and other party leaders in the hope that approval of the bill by the end of the year.
By Anthony Zurcher, BBC News, Washington
The Republican party the outlines of the new tax plan lists almost as many items that are going to remain the same, as you are, changed. The nature of the tax reform – deductions-and the gap has a group that will fight to get it.
The Republicans will boast that the tax-deferred annuity plans, the credit for low-income and the donation deduction will be unaffected.
You play a dangerous game, but due to the orientation on a valued middle-class deduction for interest on mortgages. The powerful construction lobby will wage a high-pitched effort to squash Republican hopes.
The tax proposal is framed as focused on the working and middle class – and there are some help, but your main focus is tax, a corporate income tax reduction, while popular among the party’s corporate base, not to the public’s attention.
The Republicans will try to push the legislation through as much as you have done it-healthcare-reform – by murky details, and scheduling quick votes. The forces are already aligning against her, but, and Democrats are ready to paint the plan as a SOP for the rich.
Donald Trump and the Congress-Republicans have taken a lot riding on a successful effort, but the path is far from easy.
Who are the winners and losers are?
Winners: companies and establishments
The bill slashes the corporate tax rate from 35% to 20%. It is expected that the revenue of almost $1.5 tn from 2018-2027.
The bill also sets the top tax rate for income from company a further $500bn shortfall in revenue will be taxed at the personal tax rate at 25% -.
Winners: the rich inherit
Under current law, inheritances of more than $5.49 m face a 40% tax rate. The proposal would exclude immediately double the amount of taxes on $11.2 m and lifts it out completely in 2024.
The Committee expects that the revenues of $172.2 bn by 2027.
Loser: rich home-owners in Democratic States
Current law allows taxpayers a deduction for interest on mortgages up to $1m. The Republican proposal to cap at $500,000.
Trade groups for homebuilders and realtors are against the shift, but the change is favored by some left-oriented groups, including the National Low Income Housing Coalition.
The organization estimates that only about 5% of mortgage holders would be affected in the United States.
Many of these mortgages are concentrated holders in high-cost, coastal States, such as California, New York, New Jersey, Massachusetts and Maryland.
In California, for example, more than 16% of home loans $ 500,000 exceeded, compared to less than 1% in Iowa.
The owners of the house were also hit by a $10,000 cap reason imposed tax deduction.
Many of the States that are most affected are the strongholds of the Democratic voters, and house Democratic leaders, including Nancy Pelosi and Chuck Schumer.
The amendment would also raise the revenue, but the Committee has no estimates about the specifics of the provision.
The bill would tax the activities of non-Profit organizations, not connected with their core business – for example, income on investments in subsidiaries in the possession of private universities.
The shift is expected to increase by $1.1 billion over a decade.