House GOP unveils tax-reform blueprint

House Republicans, led by Ways and Means Committee Chairman Kevin Brady (R-TX), Friday released a broad outline of their proposed changes to corporate and individual tax laws. The proposal contains no direct commentary on issues such as municipal or hospital bonds, or the current-law tax-exempt status of municipal bonds. It references a need to eliminate numerous deductions, exemptions and credits viewed as “special interest” provisions, but does not specify which ones. The plan also would eliminate the Alternative Minimum Tax for individuals and corporations, and reduce the corporate income tax rate to 20% and the slate of individual tax brackets to three (12%, 25% and 33%). Among other proposals, it would explicitly retain the mortgage interest deduction and charitable deduction for individuals. “This proposal is just the beginning of the conversation, and we look forward to working with House leaders as they craft tax reform legislation,” said AHA Executive Vice President Tom Nickels. “However, we are very concerned that this plan may result in elimination of tax-exemption for hospital bonds.”