House Republicans last week unveiled a tax plan that would reduce individual income tax rates while offering relief for businesses as well. ADA lobbyists reviewed the proposed measure and found a number of provisions that would benefit dentists and their practices.
Provisions that could have a positive impact:
- Repeal of the estate tax
- Repeal of the individual alternative minimum tax (AMT)
- One hundred percent expensing for all investments in tangible and intangible property (except real estate)
- Significant reduction in the individual tax rates (to 12 percent, 25 percent and 33 percent), with a top tax rate on active business income for pass-through entities of 25 percent (although top C corporate rate would be 20 percent).
- Pass-through entities would be treated as if they pay reasonable compensation to the owner-operators. Therefore, this compensation would be deductible from business income and will be treated as taxable income to the owner-operators.
- Repeal of all taxes found in the Affordable Care Act, including the 3.8-percent tax on net investment income for high-income individuals, the 0.9-percent additional payroll tax, the medical device tax and the health insurance tax (so-called Cadillac tax).
- Increase standard deduction and child/dependent credit.
A document like this isn't legislation and serves only as a collection of ideas and talking points for Republicans. Still, it is useful in providing a look into the party's priorities.
Contact: Margo Klosterman at 202.898.2402 or klostermanm@ada.org