Today, House Republicans approved H.R. 1, the “Tax Cuts and Jobs Act” which proposes a variety of changes to the U.S. tax code. The bill was approved by a vote of 227 to 205.
H.R. 1 proposes substantial changes to the U.S. tax code, including modifying or eliminating a variety of exemptions or deductions for individuals as well as for businesses. In particular, the bill would restrict or eliminate a number of deductions that taxpayers can claim when they itemize deductions, including state and local sales taxes, student loan interest and medical expenses. The bill also would hike the standard deduction, reduce the current seven individual tax rates to four, repeal the Alternative Minimum Tax (AMT) and the estate tax beginning with tax year 2025.
While NTEU has taken no formal position on this legislation, we continue to remain concerned with the amount of debt this proposal, would produce, if enacted, that would almost immediately require huge cuts to mandatory spending threatening federal employee benefit programs, Medicare, Social Security, and other core federal programs the American people rely on.
Action on tax reform now turns to the Senate where the Committee on Finance is currently considering their own tax reform proposal. The Finance Committee is expected to finish consideration of their legislation by the end of this week.
I will keep you apprised of further developments as tax reform efforts progress in the House and Senate.