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1 1 (December 22, 2017)

handle is hein.crs/govcgyv0001 and id is 1 raw text is: 01; &so-a re sea.rch & December 22, 2017 Comparing Key Elements of H.R. 1 to 2017 Tax Law H.R. 1 was passed in both the House and the Senate on December 20, 2017 (before the final version was passed, this bill was called the Tax Cuts and Jobs Act). The act substantively changes the federal tax system. This In Focus compares selected key elements of the act, as passed on December 20, 2017, to current law as of 2017. It builds on an earlier In Focus that compared the earlier House-passed and Senate-passed versions of the proposal (CRS In Focus IF10776, Comparing Key Tax Reform Elements: Tax Cuts and Jobs Act, by Mark P. Keightley and Molly F. Sherlock). The comparisons are not intended to be complete or comprehensive; such a comparison is beyond the scope of this product. Table I. Comparison of Major Provisions in H.R. I to Current Law Tax Provision Current Law (2017) H.R. I, as passed on December 20, 2017 Individual Provisions Individual tax rates Personal exemptions and standard deduction Inflation adjustment Child-related provisions/ personal credits Itemized and other deductions Education incentives Other individual tax expenditures Individual AMT Estate tax 7 brackets: 10% 1 15% 125% 128% 1 33%135% I 39.6%. Personal exemption: $4,050 for taxpayer, spouse, and dependents. Standard deduction: $6,350 (single) and $12,700 (married). Consumer Price Index (CPI). Refundable child tax credit of $1,000. Phase out begins at $110,000 (married) and $75,000 (single). Various itemized and above-the-line deductions. Mortgage interest deductible on up to $1 million loan, plus $100,000 for home equity loan. Various credits and deductions for education- related expenses. Various exclusions, credits, and other individual provisions. Alternative Minimum Tax (AMT). Tax above exemption ($5.49 million, 2017). 7 brackets: 10% 1 12% 122% 124% 132% 135% I 37%. (Expires 1/1/2026.) Personal exemptions repealed. Standard deduction: $12,000 (single) and $24,000 (married) in 2018. (Expires 1/1/2026.) Chained CPI. $2,000 credit per child (up to $1,400 refundable). Phase-out thresholds increased to begin at $400,000 (married) and $200,000 (single). Social Security number requirement for child credit. $500 nonrefundable credit for non-child dependents. (Expires 1/1/2026.) Repeal itemized deduction for non-disaster casualty losses, home equity loan interest, moving expenses (military exception), and certain miscellaneous itemized deductions. Modified deductions include state and local taxes limited to $ 10,000; mortgage interest limited to $750,000 on new loans; alimony not deductible or taxable. (Expires 1/1/2026.) Provisions generally retained. Repeal exclusion for moving expenses (military exception). (Expires 1/1/2026.) Increase exemption amount ($109,400, married and $70,300, single) and phase-out threshold ($1 million, married and $500,000, single). (Expires 1/1/2026.) Double exemption amount. (Expires 1/1/2026.) Business Provisions ~fl:O~ mppm qq\ ' p\w gn'a', a , q I 'S 11LULANUALiN,

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