How Could a Tax Change Affect You? This Is What the Senate and House Propose By RON LIEBER and TARA SIEGEL BERNARD
On Thursday, Senate Republicans unveiled their tax bill . It differs from last week’s version in the House of Representatives on a number of important issues. For instance, the Senate plan would completely eliminate the ability to deduct state and local taxes; there is no exception for up to $10,000 in property taxes each year, as there is in the House bill. It’s too soon to predict what, if anything, will come of all this. In the coming days and weeks, we will see which proposals survive as Congress moves toward possible full votes on these or modified bills. In the meantime, here’s a guide to some of the consumer-facing issues under consideration. Tax Brackets What’s in place now: Seven brackets , with a top rate of 39.6 percent, which people pay on income they earn beyond $480,050 for couples filing their taxes jointly. What the House proposed: Four brackets , with a top rate of 39.6 percent. But that top rate doesn’t begin until a couple hits $1 million in an