The link below will take you to a copy of the newly passed H.R. 8 that extends certain Bush-era tax benefits and establishes a new high end tax rate of 39.6 percent for earners with annual gross income exceeding $1 million. Other issues addressed are the re-authorization of the estate tax with a $5 million individual exemption and a maximum tax rate of 45 percent. In addition, the language re-authorizes the use of sales tax in lieu of state income tax deductions.
The bill is difficult to read in some places where you need a copy of the current tax code language, but it seems a restriction on the home mortgage interest deduction has been made on incomes over an amount of money between $250,000 and $450,000. MRAA is conducting more research on this.
In addition, a section of the Affordable Care Act was repealed in the bill. It pertains to the CLASS Act. The CLASS Act would have set up a new government fund that employees and employers would contribute to, similar to FICA, for long-term disability insurance. MRAA has spoken in opposition to the CLASS Act to several dozen House Member and Senator offices in the past two years. It was clearly unworkable and too expensive for small business compliance.
H.R. 8 is more than 140 pages long so be forewarned to copy at your own peril.
Larry Innis
MRAA Legislative Affairs