Republicans in the House of Representatives unveiled long-awaited legislation to overhaul the tax code. Fred Katayama reports.
Hause Republicans unveiled their long-awaited tax bill Thursday. The proposed legislation permanently slashes the corporate tax rate to 20 percent from 35 percent. For individuals and families, it reduces the number of income tax brackets to cut their tax rates and doubles the standard deduction. Among other things, it caps the deduction for state and local property taxes at $10,000. It keeps the current tax benefits of 401(k) and IRA retirement plans. But it caps the interest deduction on home mortgages at $500,000. U.S. equities have rallied in recent weeks, partly on expectations of deep corporate tax cuts. But they were down slightly after Republicans revealed the plan. Bond yields and the U.S. dollar fell as well. OppenheimerFunds' equity strategist Talley Leger. (SOUNDBITE) TALLEY LEGER, EQUITY STRATEGIST, OPPENHEIMERFUNDS (ENGLISH) SAYING: "If we did get, hypothetically, a massive tax cut that did blow out the deficit, wasn't paid for, and was debt financed that could be very good for the economic and market outlook. But, I think, that's still pretty uncertain at this stage." The bill is far from final. It still has to pass the House and Senate. Senate Republican leaders say they aim to get it done by year-end. But President Donald Trump doesn't want to wait that long. He said he wants the tax overhaul by Thanksgiving on November 23rd.