The Tax Cuts and Jobs Act legislation has been passed by Congress and signed by the President. The Act makes changes that affect both individuals and businesses. Most provisions are effective for 2018. Many individual tax provisions sunset and revert to pre-existing law after 2025. The corporate tax rates provision is made permanent.
The bill will lower individual, small business, and corporate tax rates. It nearly doubles the standard deduction, eliminates Obamacare’s individual mandate, increases the child tax credit, eases the burden of the estate tax, and includes other provisions lowering taxes for individual people and families. For small businesses, the bill includes a deduction to lower the marginal tax rate applied to pass-through business income. For corporations, the bill lowers the tax rate to 20 percent, moves to a territorial tax system for international operations, and simplifies the corporate tax code. The bill also repeals both the individual and corporate alternative minimum tax.
The vote, which took place on Dec. 19, 2017, was divided with 227 yea votes and 203 nay votes. These are the Republicans that voted no:
- Rep. Dan Donovan, New York
- Rep. John Faso, New York
- Rep. Rodney Frelinghuysen, New Jersey
- Rep. Darrell Issa, California
- Rep. Walter Jones, North Carolina
- Rep. Peter King, New York
- Rep. Leonard Lance, New Jersey
- Rep. Frank LoBiondo, New Jersey
- Rep. Dana Rohrabacher, California
- Rep. Christopher Smith, New Jersey
- Rep. Elise Stefanik, New York
- Rep. Lee Zeldin, New York