Vote Smart's Synopsis:

Vote to pass a bill that amends the Tax Cuts and Job Act of 2017 to provide permanent tax cuts to individuals and small-business tax cuts.

Highlights:

• Amends the deduction for qualified business income by removing the end date of December 31, 2025 (Title I, Subtitle B).

• Amends the deduction for individuals income by removing the end date of January 1, 2026 (Title I, Subtitle C).

• Prohibits the maximum taxable income which is taxed at a rate below 24-percent, 35-percent, and 37-percent to not be more than the sum of the earned taxable income of such child and the minimum taxable income for the 24-percent, 35-percent, and 37-percent brackets in the table (Title I, Subtitle A).

• Prohibits the maximum zero rate and the maximum 15-percent amount to not be more than the sum of the earned taxable income of such child and the amount in effect for the taxable year (Title I, Subtitle A).

• Defines “earned taxable income” as, with respect to any child for any taxable year, the taxable income of such child reduced, but not below zero, by the net unearned income of such child (Title I, Subtitle A).

• Defines maximum 15-percent rate amount as follows (Title I, Subtitle A):

• In the case of a joint return or surviving spouse, $479,000;

• In the case of an individual who is the head of a household, $452,400;

• In the case of any other individual, $425,800; and

• In the case of an estate or trust, $12,700.

• Requires that in the cases for estates and trusts, the 0 percent rate bracket is to be applied by treating the amount as being equal to $2,600 (Title I, Subtitle A).

• Amends the basic deductions for a head of household from $4,400 to $18,000 (Title I, Subtitle C).

• Amends the basic deductions in other cases from $3,000 to $12,000 (Title I, Subtitle C).

• Requires the allowance of credit against the tax imposed for the taxable year an amount equal to the sum of $2,000 for each qualifying child of the taxpayer and $500 for each qualifying dependent (other than a qualifying child) of the taxpayer (Title I, Subtitle C).

• Requires the amount of the credit allowable to be reduced by $50 for each $1000 (by which the taxpayer’s modified adjusted gross income exceeds $400,000 in the case of a joint return (Title I, Subtile C).

• Amends the treatment of student loans discharged on an account of death or disability by striking “after December 31, 2017, and before January 1, 2026 (Title I, Subtitle D).

Full Bill Text

Full Bill Text