2017 Tax Rates Permanent 5-25-25

The House bill, also known as the "One Big Beautiful Bill," proposes to make the individual income tax brackets established by the 2017 Tax Cuts and Jobs Act (TCJA) permanent.  

Here's a summary of the proposed individual income tax brackets:

For Single Filers:

Tax Rate        Taxable Income

10%                $0 to $11,925

12%                $11,926 to $48475

22%                $48,476 to $103,350

24%                $103,351 to $197,300

32%                $198,301 to $250,525

35%                $250,526 to 626,350

37%                $626,351 or more

 

Married Couples Filing Jointly

Tax Rate         Taxable Income

10%                 $0 to $23,850

12%                 $25,851 to $96,950

22%                 $96.951 to $206,700

24%                 $206,701 to $394,600

32%                 $394,601 to $501,050

35%                 $501,050 to $751,600

37%                 $751,601 or more

The tax brackets are adjusted annually for inflation, meaning the income thresholds for each bracket may shift slightly each year. 

Important Note: This information is based on the House bill as it currently stands. The bill may be subject to changes as it moves through the legislative process in the Senate. 

As of May 22, 2025, there's no indication in the House tax bill of any changes to the corporate income tax rate. 

Here's a breakdown:

Current Federal Corporate Income Tax Rate: The current federal corporate income tax rate is 21%, established by the Tax Cuts and Jobs Act (TCJA) of 2017. This rate is a flat rate, meaning it applies to all corporate taxable income, and it's permanent.

 

No Change in House Bill: The House tax bill, sometimes referred to as the "One Big Beautiful Bill", does not propose any changes to this existing corporate tax rate. 

In summary: While there might be ongoing discussions about potential tax changes, the current House bill doesn't include any provisions to alter the existing 21% federal corporate income tax rate. 

https://www.google.com/search?q=what+are+is+the+corporate+income+tax+%25+in+the+house+bill

While a 15% corporate tax rate was discussed during the campaign trail, it is not included in the House bill (often referred to as the "One Big Beautiful Bill") that was recently passed. 

Here's a breakdown:

Current Corporate Tax Rate: The bill leaves the corporate tax rate unchanged at 21%.

Campaign Promises: President Trump had frequently mentioned lowering the corporate tax rate to 15% for US manufacturers, but this proposal was not incorporated into the final bill.

Focus of the Bill: The bill primarily focuses on extending or making permanent many of the tax cuts enacted in the 2017 Tax Cuts and Jobs Act (TCJA). It also includes provisions related to spending cuts and policy changes in various areas like energy and social programs. 

In summary, the recently passed House bill does not include a reduction of the corporate tax rate to 15%. The rate remains at 21%. 

https://www.google.com/search?q=15%25+corporate+tax+in+the+house+bill+2025

No Tax on Tips

The "No Tax on Tips Act," passed by the Senate and currently under consideration in the House, proposes a tax deduction for tips received by eligible employees. This deduction would allow employees to exclude up to $25,000 in cash tips per year from their federal income tax, according to The Washington Post. The bill also includes provisions for deductions on overtime pay, potentially benefiting workers in various industries. 

Key Features of the Proposal:

No Tax on Tips: The proposal would allow eligible employees to deduct cash tips from their federal income tax, with a limit of $25,000 per year. 

No Tax on Overtime

No Tax on Overtime: The bill includes provisions for deducting overtime pay from federal income tax. 

Deductions, Not Exemptions: The proposed tax relief is structured as deductions, not exemptions, meaning employers would still withhold for taxes, but workers would deduct the income on their tax filings. 

Potential Beneficiaries: The overtime exemptions could benefit a wide range of workers, including those in manufacturing, mining, construction, and public safety. 

Reporting Requirements: The House Ways and Means (.gov) suggests that businesses would need to comply with reporting requirements, tracking tips and overtime to report them separately on W-2 and 1099 forms. 

FICA Taxes Still Apply: Tips and overtime would still be subject to FICA taxes (Social Security and Medicare). 

https://www.google.com/search?q=no+tax+on+tips+and+overtime+in+the+house+bill+2025

No Tax on Social Security

H.R.904, also known as the "No Tax on Social Security" bill, was introduced in the House of Representatives on January 31, 2025,. This bill proposes to amend the Internal Revenue Code of 1986 to remove Social Security benefits from being included in gross income for federal income tax purposes. The bill would also provide funding to ensure the Social Security trust funds are not negatively impacted by the tax removal. 

Here's a more detailed look:

HR 904: This House bill, introduced on January 31, 2025, aims to eliminate federal income taxes on Social Security benefits. 

Impact on Taxable Income: The bill seeks to amend the Internal Revenue Code to remove Social Security benefits from being considered as part of an individual's gross income, meaning they would no longer be subject to federal income tax. 

Funding” The bill includes provisions to ensure that the Social Security trust funds are not negatively impacted by the elimination of taxes on benefits. This would involve appropriations from the Treasury to cover any reduction in transfers to the trust funds. 

Potential Tax Savings: If passed, the bill could provide tax relief to Social Security recipients, potentially saving them a significant amount of money. 

Future Status:  The bill is currently in the House of Representatives and has not yet been passed or enacted into law. 

https://www.google.com/search?q=no+tax+on+social+security+in+the+house+bill+2025

No Tax on Auto Loan Interest

The "One Big Beautiful Bill," recently passed by the House, includes provisions related to car loan interest deductions and potentially extends some existing tax breaks. Specifically, the bill offers a deduction for car loan interest, up to $10,000, for vehicles purchased between 2025 and 2028. It also includes measures to extend existing tax breaks and potentially adds new ones, including no taxes on tips and overtime pay. 

Here's a more detailed breakdown:

The bill allows a deduction of up to $10,000 for car loan interest payments made between 2025 and 2028. 

The bill seeks to extend some of the tax cuts passed during President Trump's first term in 2017. 

The bill also includes new tax breaks, such as no taxes on tips and overtime pay, and potentially car loan interest. 

The bill may also impact clean energy incentives, potentially removing some existing credits and other measures. 

https://www.google.com/search?q=auto+tax+break+in+house+bill+2025

Norb Leahy, Dunwoody GA Tea Party Leader