Final GOP Tax Overhaul Bill Retains Biggest Cuts To Businesses, Wealthy

House Ways and Means Committee Chairman Kevin Brady, R-Texas, center, embraces Senate Finance Committee Chairman Orrin Hatch, R-Utah, left, as House and Senate conferees after GOP leaders announced they have forged an agreement on a sweeping overhaul of the nation's tax laws, on Capitol Hill in Washington, Wednesday, Dec. 13, 2017. Rep. Richard Neal, D-Mass., ranking member of the House Ways and Means Committee, looks on at far right. Democrats objected to the bill and asked that a final vote be delayed until Senator-elect Doug Jones of Alabama is seated. (AP Photo/J. Scott Applewhite)
J. Scott Applewhite/AP

WASHINGTON (AP) — The sweeping Republican tax overhaul would cut rates for corporations and the wealthy while offering modest reductions for the middle class.

The bill, according to a summary Friday, would set seven tax brackets, lowering the top rate from 39.6 percent to 37 percent.

It would expand the child tax credit, preserve the adoption tax credit and allow Americans to deduct some medical expenses. It would eliminate the requirement that Americans buy health insurance under Barack Obama’s Affordable Care Act.

Republicans were unveiling the bill later in the day and plan to vote next week after securing the support of two key senators — Marco Rubio of Florida and Bob Corker of Tennessee.

The final version of the GOP tax bill would provide a $2,000 per child tax credit to families making up to $400,000 a year.

That doubles the child tax credit from the current maximum of $1,000 and makes it available to a greater number of middle- and upper-bracket families.

The credit was a top priority of GOP Sen. Marco Rubio of Florida, who won a late-stage concession that would make up to $1,400 of the credit available as a tax refund to lower- and middle-income families with relatively small tax bills.

It would begin to phase out for families earning above $400,000. That’s down from $500,000 in the original Senate measure, which passed earlier this month.

 

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