The White House and House Republicans have announced that the GOP tax plan, a version of which has been proposed for months, will include a provision that would allow the wealthy to deduct up to $10,000 from their taxes if they sell their homes.
The bill, authored by House Speaker Paul Ryan, also would provide a tax credit of up to a $1,000 to individuals who make less than $500,000 a year.
However, it would allow those making more to deduct an additional $10 million, with the largest tax breaks going to families earning between $250,000 and $500-1,500, the New York Times reported Friday.
The plan, called the “Buffett Rule,” was designed to help middle-income families and to make tax cuts more broadly popular.
However the legislation will also offer large tax breaks to the wealthy.
The $1.5 trillion plan would lower taxes on individuals making between $5 million and $10.9 million, while the $2 trillion package would reduce taxes for families making more than $250 million.
The top tax rate for those earning over $250m would drop from 35 percent to 28 percent.
For those earning between that level and $1 million, the top tax bracket would drop to 35 percent.
Those earning over that amount would also receive a $2,000 credit on their taxes, a deduction that has been offered by many Democratic leaders in recent years.
The credit would be available to anyone earning over an average annual income of $250k or more.
It would also include a $10 credit for families earning $250K and up.
A separate bill by Republican Sens.
Orrin Hatch and Susan Collins would extend the standard deduction, which would benefit those making less than about $10k.
The Senate version of the tax plan also would extend that deduction for married couples filing jointly.
The tax bill would eliminate the alternative minimum tax, which is a levy on some individuals, couples and families.
It also repeals the estate tax, a tax that applies to estates of at least $5.49 million.
The legislation also would eliminate some deductions and credits, including the child tax credit and the state and local tax credit, as well as eliminate the child care credit, which helps low-income parents.
It is unclear whether these provisions will be included in the House or Senate version.
In the Senate, the tax bill will be presented to a joint conference committee on Tuesday.
The conference committee will then vote on whether to proceed with a bill or pass a reconciliation bill that would pass both chambers and be signed by President Donald Trump.