Senate Finance Committee Chair Orrin Hatch (R-Utah) released the modified mark for the Tax Cuts and Jobs Act. The modified mark will effectively repeal the Affordable Care Act ("ACA") individual mandate tax. According to a press statement issued by Senator Hatch, the ACA individual mandate tax is being repealed to (i) provide further relief to low- and middle-income families, (ii) ensure that business provisions are permanent, and (iii) help ensure that legislation meets the terms of Senate budgetary rules for reconciliation.
In addition to repealing the ACA individual mandate tax, Senator Hatch's modified mark will:
- double the child tax credit from $1,000 to $2,000;
- reduce individual tax rates for middle-income Americans from 22.5 percent to 22 percent, 25 percent to 24 percent, and 32.5 to 32 percent;
- update the pass-through provisions for partnerships and S corporations; and
- make permanent the 20 percent corporate tax rate.
Explaining the modifications, Senator Hatch stated:
"By scrapping this unpopular tax from an unworkable law, we not only ease the financial burdens already associated with the mandate, but also generate additional revenue to provide more tax relief to these individuals. In this revised mark, Americans families will see the child tax credit double and individual rates dip even further. Additionally, the modified mark creates more permanence in our tax system so that American job creators can invest in the long term, grow their business and create new jobs."
In addition, Senator Hatch said that the modifications are intended to better reflect Finance Committee member priorities, and have incorporated amendments filed by both Republicans and Democrats.
Commentary / Mark Howe
The Senate is subject to stricter budget rules than the House, and has now turned to cutting future subsidies under the Affordable Care Act to help fund its version of tax reform
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