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8 key differences between the dueling Senate and House tax bills

2. Individual tax rates

There are seven individual tax rates – 10 percent, 15 percent, 25 percent, 28 percent, 33 percent, 35 percent and 39.6 percent. There’s also a standard deduction of $ 6,350 for single filers and $ 12,700 for married couples that helps create a de facto 0 percent bracket.

Senate Bill

Keep the brackets at seven.

The Senate would keep the seven brackets, but generally with lower or equivalent rates – 10 percent, 12 percent, 22.5 percent, 25 percent, 32.5 percent, 35 percent and 38.5 percent. The thresholds for those rates have yet to be released. The standard deduction would be $ 12,000 for single filers and $ 24,000 for married couples.

House Bill

Collapsing to four.

The House proposes only four brackets, but keeps the top rate at 39.6 percent for income above $ 1 million a year for married couples. The other rates are 12 percent, 25 percent and 35 percent. The standard deduction would be $ 12,200 for single filers and $ 24,400 for married couples.

Source: POLITICO – TOP Stories

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