How the House and Senate
Tax Bills Stack Up

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Members of Congress are rushing to fulfill one of the Republican Party’s biggest and most long-awaited goals before year’s end. The Senate approved its bill Dec. 2, which diverges in some key ways from the House bill approved Nov. 16. Those differences will need to be resolved before a bill can be passed into law.

Income Tax Brackets
Individual tax provision
House
revise
It would consolidate the current seven tax brackets to four.
Rate Single Married, filing jointly
12% Up to $45K Up to $90K
25% $45K–$200K $90K–$260K
35% $200K–$500K $260K–$1M
39.6% More than $500K More than $1M
Senate
revise
It would maintain seven tax brackets, but lower the rates for most brackets. The rate cuts would sunset in 2026.
Rate Single Married, filing jointly
10% Up to $9,525 Up to $19,050
12% $9,525–$38.7K $19,050–$77.4K
22% $38.7K–$70K $77.4K–$140K
24% $70K–$160K $140K–$320K
32% $160K–$200K $320K–$400K
35% $200K–$500K $400K–$1M
38.5% More than $500K More than $1M
Obamacare Individual Mandate
Individual tax provision
House
maintain
It does not address the Affordable Care Act's individual mandate.
Senate
repeal
It would eliminate the tax penalty for failure to maintain health coverage, starting in 2019.
State and Local Tax Deductions
Individual tax provision
House
revise
It would repeal the deduction for state and local income taxes or sales taxes, while preserving the deduction for state and local property taxes, capped at $10,000.
Senate
revise
It would mirror the House bill, repealing the deduction for state and local income taxes or sales taxes, while preserving the deduction for state and local property taxes, capped at $10,000.
Medical Expense Deduction
Individual tax provision
House
repeal
It would repeal a deduction for large medical expenses.
Senate
revise
It would temporarily enhance the deduction by setting a lower cost threshold for it—to 7.5 percent of adjusted gross income, down from 10 percent.
Mortgage Interest Deduction
Individual tax provision
House
revise
It would limit the deduction for interest paid on mortgages for newly purchased homes to mortgages of $500,000 or less, while limiting the deduction to one principal home. Current law sets that cap at $1 million.
Senate
maintain
It would preserve the deduction for interest paid toward home mortgages under $1 million.
Repatriation
Business tax provision
House
revise
It would tax companies' accumulated offshore earnings at 14 percent for cash holdings and 7 percent for non-cash holdings. Under current law, the U.S. taxes multinationals on their global earnings at the 35 percent corporate rate, but allows them to defer taxes on foreign earnings until they bring them back to the U.S., or "repatriate" them.
Senate
revise
It would tax companies' accumulated offshore earnings at 14.5 percent for cash holdings and 7.5 percent for non-cash holdings.
Carried Interest
Business tax provision
House
revise
It would limit the carried interest break to gains on assets held for at least three years.
Senate
revise
It would limit the carried interest break to gains on assets held for at least three years.
Standard Deduction
Individual tax provision
House
revise
It would expand the standard deduction for individuals to $12,000 and to $24,000 for joint filers.
Senate
revise
It would expand the standard deduction for individuals to $12,000 and to $24,000 for joint filers. The expansion would sunset in 2026.
Child Tax Credit
Individual tax provision
House
revise
It would increase the credit to $1,600 per child younger than 18—up from $1,000—and include an additional $300 credit for each parent as part of a consolidated family tax credit. The $300 credit would expire in 2023.
Senate
revise
It would increase the credit to $2,000 per child younger than 18—up from $1,000. It would also increase the number of people eligible to claim it by increasing the threshold at which the credit would phase out to $500,000 for joint filers from the current $110,000 threshold. The expanded credit would sunset in 2026.
Estate tax
Individual tax provision
House
revise
It would double the threshold for exclusion from the tax, and it would fully repeal the tax in 2025.
Senate
revise
It would maintain the tax while doubling the threshold for exclusion. The higher threshold would sunset in 2026.
Pass-Through Business Income
Individual tax provision
House
revise
It would lower the rate for pass-through income to 25 percent from 39.6 percent, and create a still lower rate of 9 percent on the first $75,000 of net business income for joint filers making less than $150,000—or the first $37,500 for individuals making less than $75,000. The lower rate would phase out at higher incomes.
Senate
revise
It would allow a 23 percent deduction for pass-through owners. After the deduction, owners would pay tax at their individual income tax rates. Restrictions would be in place limiting the deduction for pass-through owners with taxable income above certain levels. The deduction would sunset in 2026.
Corporate Tax Cut
Business tax provision
House
revise
It would lower the corporate rate to 20 percent from 35 percent in 2018.
Senate
revise
It would delay a corporate rate cut to 20 percent from 35 percent until Jan. 1, 2019.
Full and Immediate Expensing
Business tax provision
House
revise
It would allow companies to fully and immediately deduct the cost of their spending on new equipment for a period of five years. Under current law, companies must deduct such spending over several years.
Senate
revise
It would allow companies to fully and immediately deduct the cost of their spending on new equipment for a period of five years. The size of the deduction would gradually phase down after five years.
Adoption Tax Credit
Individual tax provision
House
maintain
It would preserve a credit for adoptive parents worth as much as $13,750 per child. An initial version of the bill repealed the credit.
Senate
maintain
It would preserve a credit for adoptive parents worth as much as $13,750 per child.