Nine differences between the House and Senate tax plans — and how they would affect you

U.S. Senate Majority Leader Sen. Mitch McConnell (C) speaks as Senate Finance Committee Chairman Sen. Orrin Hatch (R), and Sen. Chuck Grassley (L) listen during a meeting with the Senate Finance Committee November 9, 2017.
↓ Advertisement ↓

About an hour before the House Ways and Means Committee approved a sweeping tax overhaul Thursday, the Senate Finance Committee unveiled its own plan. Here are some of the differences between the two proposals, which are moving simultaneously through Congress.

Brackets: The House has four: 12%, 25%, 35% and 39.6%. The Senate keeps seven but lowers them all: 10%, 12%, 22.5%, 25%, 32.5%, 35% and 38.5%.

Child tax credit: Increases from $1,000 to $1,600 in House bill, $1,650 in Senate bill per child.

Corporate cut: The House would lower the top corporate tax rate from 35% to 20% next year, and the Senate would do it starting in 2019.

↓ Advertisement ↓

Estate tax: The House would double the current exemption to apply only to estates worth more than $10 million next year, and phase the tax out completely over six years; Senate would double the exemption next year but otherwise keep the tax.

Major medical expenses: Deduction for expenses that exceed 10% of a taxpayer's income would be eliminated by the House; the Senate does not change this deduction.

Mortgage interest: For new mortgages, only interest on the first $500,000 borrowed for a primary home would be deductible under the House bill, and interest on mortgages for second homes and home equity loans would no longer be deductible; the Senate would not not change the current limit, which is for the first $1 million borrowed, but would end the deduction for home equity loans.

State and local taxes: The House bill would allow a deduction for up to $10,000 in property taxes, but end deductions for income or sales taxes; the Senate would eliminate all of them.

Student loan interest: Deduction eliminated by the House bill; left intact by the Senate.

Teacher purchases: Deduction for teachers who buy supplies for their classrooms would be eliminated by the House bill but left in place by the Senate.