(Reuters) - The Republican tax overhaul framework being promoted by President Donald Trump calls for slashing taxes on corporations, repealing some taxes paid primarily by the wealthy and lowering some taxes on families and individuals. [nL2N1MZ0SH]
The plan is intended as a guideline for the House of Representatives Ways and Means Committee and the Senate Finance Committee, the two tax-writing panels in Congress that are already at work drafting detailed tax legislation based on the framework.
Questions about the final shape of Republican tax legislation are swirling in Washington, with Trump himself raising doubts about certain provisions.
Here is a look at key provisions in the existing framework.
* Reduce the U.S. corporate income tax rate to 20 percent from a current statutory 35 percent
* Eliminate the corporate alternative minimum tax
* Move to a territorial tax system that no longer taxes U.S. corporate profits overseas at the U.S. corporate income tax rate
* Require U.S. corporations to return assets held overseas at separate, unspecified and lower one-time tax rates for invested assets and cash or cash equivalents
* Establish a minimum global tax aimed at the overseas profits of U.S. corporations operating in tax haven countries
* Limit the maximum tax rate applied to small businesses to 25 percent, compared to current policy that taxes so-called pass-through income at an individual tax rate of up to 39.6 percent
* Allow immediate and full expensing of capital investments for at least five years
* Partially limit the business tax deduction for debt interest payments
* Lower the top individual rate from to 35 percent from 39.6 percent
* Increase the standard deduction for taxpayers to $12,000 from $6,300 for individuals and to $24,000 from $12,600 for married couples
* Reduce the current seven individual income tax brackets to three brackets of 12 percent, 25 percent and 35 percent
* Give the two congressional tax-writing committees the flexibility to set a fourth bracket at a rate higher than 35 percent for the wealthiest Americans, to ensure that the overhaul plan does not shift the tax burden from higher to lower income households
* Repeal the deduction for state and local tax payments
* Eliminate the $4,050 personal exemption for taxpayers and their family members
* Create an unspecified but “substantial” increase in child tax credit, which currently stands at $1,000, raise the income limit to qualify for the credit, and eliminate the higher qualifying income rate for married couples
* Create a $500 tax credit for taxpayers with non-child dependents
* Repeal the individual alternative minimum tax on high-income taxpayers
* Eliminate unspecified itemized deductions that would impact 30 percent of taxpayers and 25 percent of families
* Repeal the estate tax paid chiefly by the richest Americans
Compiled by David Morgan and Amanda Becker; Editing by Kevin Drawbaugh and Will Dunham
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