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T17-0227 - Unified Framework; Distribution of Federal Tax Change by Expanded Cash Income Percentile, 2027

Table shows the distributional effects of the Unified Framework as released 9/27/2017 by Expanded Cash Income Percentile in 2027. Proposal would repeal individual and corporate AMT; personal exemptions; itemized deductions (except charitable and mortgage interest)and Pease limitation; certain business deductions and credits; and estate tax. Proposal would enact 3 individual tax rates of 12, 25, and 35 percent; increase standard deduction to $24,000 married ($12,000 single/$18,000 head of household), indexed for inflation after 2018; increase non-refundable portion of child tax credit to $1,500 (unindexed) and phaseout threshold for married couples to $150,000 (unindexed); enact $500 (unindexed) credit for non-child dependents; max tax rate of 25 percent on pass-through income;20 percent corporate tax rate; expensing of equipment put in service through 12/31/22; territorial system with global reduced rate tax on foreign profits of U.S. multinationals; deemed repatriation over 8 years of accumulated untaxed pre-2018 earnings of CFCs, with reduced rates; index tax system using chain-weighted CPI.

September 29, 2017