Senate tax plan meets $1.5 trillion federal deficit ceiling for tax legislation - Reuters

Eren Sengezer FXStreet

Reuters is reporting the bullet points of the recently published U.S. Senate Republicans’ version of the tax cut bill.

Senate plan sets permanent 20-pct corporate tax rate with 1-year delay.

Senate plan meets $1.5 trillion federal deficit ceiling for tax legislation.

Senate plan keeps 7 individual tax brackets, sets 38.5-pct top earners rate, down from 39.6 pct.

Senate plan sets 10-pct tax rate for U.S. companies with IP in foreign low-tax jurisdictions.

Senate plan eliminates net operating loss carry-backs for businesses.

Senate plan fully ends individual deduction for state and local taxes, keeps business deduction.

Senate plan does not repeal federal estate tax on inheritances, but doubles exemptions.

Senate plan allows full expensing on business capital investments for five years.

Senate plan sets no special 'pass-through' tax rate, lets business owners deduct about 17.4 pct of business income from individual tax.

Senate plan sets deemed repatriation tax on overseas profits at 12 pct for liquid assets, 5 pct for illiquid assets.

Senate plan expands U.S. child tax credit to $1,650.

Senate plan leaves carried interest loophole unchanged.

Senate plan leaves home mortgage interest deduction unchanged, ends benefit for home equity loans.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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