Senate Republicans passed President Donald Trump’s tax plan on December 2, 2017. Republicans still have a lot of differences between the House and Senate tax bills to compromise on. The House and the Senate have to pass the “same” tax bill. So which one would be “better.” Better for whom, would be the question to ask.
I’m going to keep this simple for now. After this bill is put into law that’s when things will get complicated. But for now I will go over just a few things that make the House tax bill and the Senate tax bill different.
Family and Child Tax Credit
The House bill expands the credit to $1,600 per child and begins to phase it out for married couples making more than $230,000. The Senate bill expands the credit to $2,000 per child, with a phaseout beginning at $500,000 of a couple’s income.
Mortgage interest deduction
The Senate bill keeps the limit for the mortgage interest deduction in place for homeowners for the first $1 million of home debt. While the House bill caps it at the first $500,000 of debt.
Medical and Student Loan Deductions
The House bill eliminates deductions for high medical expenses and student loan interest. The Senate bill would leave the aforementioned deductions, intact.
The Affordable Care Act (ObamaCare)
The Senate bill repeals the Affordable Care Act requirement that individuals buy health insurance coverage. Currently, the mandate is enforced via a tax penalty for people who fail to purchase coverage. The House bill does not touch the mandate.