WASHINGTON — The tax reform proposal from the House Republican leadership is getting mixed reviews from even tire industry and other business interests, with many groups offering both praise and condemnation depending on the specific provision.
Introduced Nov. 2, H.R. 1 — the Tax Cuts and Jobs Act — includes many provisions designed to help business and industry, including:
- A cut in the corporate tax rate to 20 from 35 percent;
- Allowing corporations to repatriate money kept overseas at a tax rate of 12 percent;
- Eliminating taxes on overseas profits; and
- A phaseout of the estate tax — the "death tax" hated by small businesses — with total repeal by Jan. 1, 2024.
The legislation would reduce the number of individual income tax rates from seven to four, at 12, 25, 35 and 39.6 percent. It would increase the standard deduction and the child tax credit, but eliminate deductions for state and local sales taxes, student loans and large medical expenses.
The deduction for state and local property taxes would be capped at $10,000, and the cap on the mortgage interest deduction for new home purchases would be halved, from $1 million to $500,000.
One of the most enthusiastic responses to H.R. 1 was from the American Trucking Associations, which wrote Congress Nov. 3, urging swift passage of the legislation.