House Republicans announced a $237 billion tax cut with provisions to stimulate the economy.
Standard Income Tax Deduction, Expanded Opportunity Zones, Imposition of Excise Tax on Property Purchases Related to China and Russia
This includes the rollback of some new requirements for reporting transactions to the Internal Revenue Service and the reinstatement of write-offs for business expenses that expired during the Trump administration. Missouri Republican House Speaker Jason Smith said, “With this provision, an American family of four will pay no federal tax up to $68,000 on first income.” Most of the tax package provisions are aimed at stimulating US manufacturing and small businesses.
This will allow Americans to spend more of their hard-earned money on personal and family needs
Apart from reducing the tax burden, the bill would also expand the Opportunity Zone into rural areas and impose a 60% excise tax on US land purchases by individuals and companies with ties to Russia and China. Earlier this year, the IRS delayed new reporting requirements until 2024. Companies are now allowed to deduct $1 million worth of investments in new equipment and other productivity measures. A Republican bill would raise that cap to $2.5 million. The GOP measure would also reinstate a recently expired Trump-era tax-cut provision that allows companies to immediately deduct research and development costs.