After negotiating on two versions of the bill already passed by the House and Senate, Republicans unveiled their final tax bill — which would reshape the tax code in three decades, making America more competitive. The Congress will vote on the legislation on Tuesday and sent it to President Donald Trump for his signature by the end of the year.

The combined plan will likely ease the burden of businesses instead of the middle class and calls for lowering corporate income tax rates, repeal of the corporate alternative minimum tax, double the standard deduction for individuals, and restructuring of the way pass-through businesses are taxed.

The tax reform represents the first major legislative achievement for Trump after nearly a year of his control on the Congress and the White House. It is also the most prestigious move for Republicans ahead of the 2018 midterm elections.

Inside The Final Bill

The new proposal lowers the corporate tax rate from 35% to 21%, starting next year and limits the maximum tax rate applied to the business income of small and family-owned businesses conducted as sole proprietorships, partnerships and S corporations to 20%, which is lower than 23% called for in the Senate-passed bill.

For individuals, the final version keeps the seven tax bracket intact but lowers the rates for most brackets. The new tax rates are 10%, 12%, 22%, 24%, 32%, 35% and 37% compared with the current structure of 10%, 15%, 25%, 28%, 33%, 35% and 39.6%. The framework offers tax relief to middle-class families by doubling the standard deduction to $12,000 for single filers and $24,000 for a married couple filing jointly.

Additionally, the final bill allows companies to send their offshore profits back to the United States without incurring extra taxes. It sets a one-time tax for companies to repatriate more than $2.6 trillion held overseas, at rates of 15.5% for cash and cash-equivalents and 8% for illiquid assets. The final version also eliminates corporate alternative minimum tax and scrap Obamacare’s provision that requires most Americans to buy health insurance or pay a penalty, beginning in 2019. Plus, it does not call for a repeal of the estate tax but nearly doubles the real estate exemption to above $11.2 million from $5.6 million.

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