The plan would slash the corporate tax rate to 20 percent from 35 percent, and create a new 25 percent tax rate for “pass through” businesses such as partnerships, sole proprietorships and family farms. The plan would eliminate many corporate “loopholes” and deductions, such as the state and local tax deduction. The most politically fraught proposal is eliminating the state and local tax deduction, which allows taxpayers who itemize to write off their property, state and local taxes. Eliminating the deduction, which the real estate industry also opposes, would save more than $1 trillion over a decade and make room for the tax cuts. Changes to core components of the tax plan could force Republicans to slim down the size of the tax cuts.

Source: New York Times September 28, 2017 18:58 UTC