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Sweeping House Tax Reform Bill Introduced

Posted on 11/3/2017

House Republican leaders have unveiled a draft of sweeping tax reform legislation -- the first major overhaul of the tax code in more than three decades.

Key provisions in the bill include:
A corporate income tax rate for C-corporations of 20 percent
An income tax rate of 25 percent for passive income from "pass-through" entities, including Subchapter S banks (with potential restrictions on the ability of active shareholders to claim the lower corporate rate)
Restrictions on net interest deductibility, with businesses whose average gross receipts exceed $25 million prohibited from deducting net interest expense exceeding 30 percent of adjusted taxable income
Retained homeownership provisions but subject to new caps going forward
Eliminating the deduction for deposit insurance premiums for banks with over $50 billion in assets and phasing in the elimination for banks with $10-50 billion in assets
Broadening the tax base by eliminating new markets and historic tax credits and net operating loss carrybacks

The Bill does not address the tens of billions of dollars in outdated, unfair and unreasonable tax advantages enjoyed by credit unions and the Farm Credit System.

The House Ways and Means Committee is expected to take up the legislation starting Monday for at least a week.

Click here to view the bill

Click here to view the bill summary

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