How big is the impact? We must know the key points of the newly passed tax reform bill by the US House of Representatives

How big of an impact will it have? You must know the key points of the newly passed tax reform bill in the U.S. House of Representatives. Video: Republicans in the U.S. House of Representatives announced the tax reform bill. Source: CCTV News…

Video: Republicans in the U.S. House of Representatives announced the tax reform bill. Source: CCTV News

China News Service, November 17. According to the Chinese website of the United States, the U.S. House of Representatives passed the tax reform bill proposed by Republican members on the 16th. The Senate is considering amending similar bills with considerable differences and may put them up for a vote before Thanksgiving on November 23. After the two bills were compromised and merged, they were sent to President Trump for his signature. The following are the key points of the House tax reform bill:

Personal income tax

The current seven tax brackets of personal income tax in the United States will be compressed into four, namely 12%, 25%, 35% and 39.6%.

The lowest tax bracket will rise from 10%, but the sponsor of the bill said that people in the 10% bracket this year will not owe taxes next year.

The highest bracket of tax rates will apply to couples earning more than $1 million, while couples currently earning $477,000 will be taxed at this rate.

The standard deduction for married couples will increase from $12,700 this year to $24,400 next year.

The personal exemption of $4,050 per person, spouse and children will be eliminated this year.

The child tax rebate will rise from $1,000 to $1,600, and the income amount for eligible couples will rise from $110,000 this year to $230,000.

The new $300 tax rebate will apply to taxpayers, spouses and adult dependents, although the program expires in five years.

The new bill would eliminate the alternative minimum tax and eliminate the estate tax in 2024.

Eliminates deductions for state income taxes, medical expenses, second home mortgage interest and disaster losses, tax filing expenses, and teacher stationery fees.

Alimony tax is collected from the payer, not the current recipient.

The real estate tax deduction will be capped at $10,000.

The upper limit for mortgage interest deductions in classified deductions will be reduced from the current US$1 million to US$500,000.

Those who adopt classified deductions can still deduct charitable donations.

Corporate income tax

The maximum corporate tax rate will drop from 35% to 20%.

The United States will move to a new system that only taxes companies based in the United States on their domestic income, rather than taxing their global income.

For individual owners or partners who file taxes not in the name of a company but in the name of an individual, part of the income may be subject to a maximum tax rate of 25%.

In the next six years, the company's new equipment expenses can be written off at once instead of amortized over many years.

Corporate shopping interest deduction will drop sharply.

Abolish the deduction for lobbying local governments.

Companies can continue to deduct state and local taxes related to their business.