House Republicans released their plan for tax reform on Thursday morning, which includes the preservation of 401(k)s as well as lower rates for individual households while trimming deductions for state and local taxes, according to Fox News.
The plan additionally lowers the cap on popular deduction to interest on mortgages from $1M to $500K and limits the deductibility of local property taxes to $10K while eliminating the deduction for state income taxes.
Check it out:
“I view the elimination of the deduction as a geographic redistribution of wealth, picking winners and losers,” New York Republican Rep. Lee Zeldin said. “I don’t want my home state to be a loser, and that really shouldn’t come as any surprise.”
Called the Tax Cuts and Jobs Act, the GOP plan would also leave the top individual tax rate at 39.6 percent.
The child tax credit will rise to $1,600 from $1,000, though the $4,050 per child exemption would be repealed.
The legislation is the first major revamp of the U.S. tax code in three decades and has been a top legislative and political priority of Republicans.
House Speaker Paul Ryan has touted the bill as a victory for middle class families, while President Trump commented that the legislation is “another important step toward providing massive tax relief for the American people.”
Here’s the clip of the full event: