White House press secretary Sarah Huckabee Sanders praised the House approval of the GOP final tax plan Tuesday.
President Donald Trump also celebrated the victory on Twitter.
He congratulated House Speaker Paul Ryan along with Reps. Kevin McCarthy, Steve Scalise, Cathy McMorris Rodgers and what he said were “all great House Republicans who voted in favor of cutting your taxes!”
The $1.5 trillion package would provide steep tax cuts for businesses and the wealthy and more modest cuts for middle- and low-income families.
The bill is now headed to the Senate for an expected vote Tuesday evening.
It’s Trump’s first major legislative win to date.
Some highlights of the legislation, which would make about $1.5 trillion in tax cuts:
- Personal income tax rates: The bill retains the current number of brackets, seven, but changes them to 10, 12, 22, 24, 32, 35 and 37 percent. The top bracket for wealthiest earners, 39.6 under current law, drops to 37 percent. But it will kick in at a lower level, $600,000 per married couple, instead of the current $1 million. The reductions in personal income tax rates are temporary, ending in 2026.
- Standard deduction: Used by about 70 percent of U.S. taxpayers, currently $6,350 for individuals and $12,700 for married couples. The bill doubles those levels to $12,000 for individuals and $24,000 for couples, expiring in 2026.
- Personal exemption: The bill ends the current $4,050 personal exemption.
- State and local taxes: Ends the unlimited federal deduction for state and local income and sales taxes, allowing the deduction only for a total of up to $10,000 in combined property, income or sales taxes.
- Tax credits: Doubles per-child tax credit to $2,000 for families making up to $400,000 a year. Up to $1,400 of the $2,000 credit is available as a tax refund to lower- and middle-income families with relatively small tax bills. The per-child credit expires in 2026. The bill also provides a tax credit for dependent care for children and older dependents; it retains the current adoption tax credit.
- Home mortgage interest deduction: Limits the deduction to interest paid on the first $750,000 of a new loan for a first or second home. The current limit is $1 million.
Read more about how the tax bill could affect you in these 3 charts from PBS NewsHour’s Lisa Desjardins.