The drama is almost over as the Republicans have unveiled their tax bill. They are also closer to victory since Sen. Bob Corker (TN) and Sen. Marco Rubio (R-FL) have decided to back the bill, leaving the Senate with only two undecided Republicans. From The New York Times:

On Friday, as Republicans released details about the final bill, it became clear that the agreement would provide deep and longstanding tax cuts for businesses, while providingslightly more generous tax breaks to low- and middle-income Americans byreducing some benefits for higher earners.

With the finish line to their first legislative victory in sight, Republican negotiators agreed to provide a more generous child tax credit in the final bill to shore up support from Mr. Rubio, who said he would not vote for the legislation unless it provided more help to lower-income Americans.

One of the bigger things? The elimination of the Obamacare individual mandate remains in the bill. CNBC provided a quick list of the top points:

  • The proposal would maintain seven individual income tax brackets at slightly different rates: 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent and 37 percent. The top rate would fall from the current 39.6 percent. The House originally proposed collapsing the system to four brackets, saying it would simplify the filing process.
  • The bill would scrap the personal exemption but increase the standard deduction to slightly less than double its current level. It would go to $12,000 for an individual or $24,000 for a family.
  • It would drop the corporate tax rate to 21 percent from the current 35 percent. The change would take effect next year.
  • The plan would set a 20 percent business income deduction for the first $315,000 in income earned by pass-through businesses.
  • The bill would scrap Obamacare’s provision that requires most Americans to buy health insurance or pay a penalty. Doing so is projected to lead to 13 million fewer people with insurance and raise average Obamacare premiums, according to the nonpartisan Congressional Budget Office.
  • The plan would eliminate the corporate alternative minimum tax, which the Senate added back to its plan at the last second to raise money. House leaders and corporate groups said the tax would stifle research and development.
  • The estate tax, or so-called death tax, would remain but the exemption from it would be doubled.
  • The child tax credit would double to $2,000 per child from $1,000. It would be refundable up to $1,400 and start to phase out at $400,000 in income.
  • The plan would limit state and local tax deductions. It would allow the deduction of up to $10,000 in state and local sales, income or property taxes.

Yes, the estate tax remains despite the House leaving it out. It doubles to $11 million for a single person and $22 million for a married couple. If anyone exceeds those levels they still get hit.

Even though the state and local tax deductions remain, those who represent those in the northeast said it’s not enough. From Politico:

But some lawmakers, particularly from the Northeast, still say it’s not enough for many of their constituents. Bottom line: The amount of their income that is taxable would increase.

Homeowners, mostly on the East and West coasts, could see their home values decline. It would also affect infrastructure and public services such as education, according to Americans Against Double Taxation, since raising revenue needed to fund the costs of governance would be harder if residents can no longer write off all state and local taxes.

The GOP had a snag with how to treat pass-through businesses “whose owners pay taxes on their businesses through the individual side of the tax code.” The lawmakers want to make it easier for those businesses “to claim the Republicans’ reduced business rate.”

Sen. Ron Johnson (R-WI) and Sen. Steve Daines (R-MT) threatened to vote no on the original bill due to treatment of said businesses. It looks like they didn’t win because the bill will preclude some of the businesses “from the lower tax rates on pass-through income.”

This change in pass-throughs could also harm those “who depend on a regular paycheck.” Politico explained:

Many of them would get a mostly minimal decrease in their marginal tax rate, compared to contractors and the self employed. This is due to the changes in taxation of pass-throughs, and some tax experts say people would try to game the system to take advantage of the pass-through deduction.

College students and teachers gained some in the bill:

College loan interest would remain deductible, and tuition waivers for graduate students wouldn’t get counted as taxable income. Both had been on the chopping block. But an excise tax on large college endowments is expected to remain in the tax package, which opponents are saying could hurt college scholarships going forward. For lower levels of education, teachers would still be able to deduct some of their out-of-pocket expenses for school supplies they buy their students.

Of course the Democrats have accused the GOP of favoring the rich and businesses and stepped all over the little guy. From Fox News:

“Under this bill the working class, middle class and upper middle class get skewered while the rich and wealthy corporations make out like bandits,” Senate Minority Leader Chuck Schumer, D-N.Y., said in a statement. “It is just the opposite of what America needs, and Republicans will rue the day they pass this.”

Chuck and his fellow Democrats could make this a lot easier by CUTTING THE BUDGET. The fact is no one wins because in order to truly have tax cuts, the government has to cut spending. But they are not willing to part with their revenue.

The House plans on voting on the bill next Tuesday. You can read all 1,000 pages here.