Other tax cuts in the legislation now moving through Congress will be brand new, though most of the new additions are scheduled to end after a few years.
Here’s a look at some of the big-ticket items in the latest round of GOP tax cuts.
Personal income tax rates will stay the same: Under current law and moving up the income spectrum, marginal rates are 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent, and 37 percent. The new GOP law will lock those rates in place.
Higher standard deduction, no personal exemptions: The law preserves — and temporarily boosts — the higher standard deduction, which was nearly doubled back in 2017. The new boost is $1,000 for individuals and $2,000 for couples filing jointly and will last for four years.
No taxes on tips or overtime pay: The bill creates a temporary full deduction for tips and overtime pay, allowing taxpayers to avoid paying taxes on those types of compensation. Taken together, the tax breaks will reduce revenues by about $164 billion through 2028 when they expire.
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