How Could a Tax Change Affect You? This Is What the Senate and House Propose<br />You can generally deduct the amount you pay for state and local tax income taxes, including property taxes, on your federal income tax return.<br />For instance, the Senate plan would completely eliminate the ability to deduct state<br />and local taxes; there is no exception for up to $10,000 in property taxes each year, as there is in the House bill.<br />What the Senate proposed:<br />Seven brackets, with a top rate of 38.5 percent that you pay on income beyond $1 million annually if you’re married or $500,000 if you’re single.<br />The House bill would create a new 25 percent tax rate for what it refers to as “pass-through”<br />businesses, for a portion of the business net income that passes through to the owners.<br />The Senate bill’s lowest tax bracket is at 10 percent for individuals, while the House bill had raised it to 12 percent.<br />As it stands, taxpayers can deduct moving expenses — even if they do not itemize their tax returns — as long as the<br />new workplace is at least 50 miles farther from the old home than the old job location was from the old home.
