TEST
Individual Income Tax
| Option | Current Law | Trump Plan |
|---|---|---|
| Repeal and Replace the Personal and Dependent Exemption | ||
| Eliminate personal exemptions | $1.8 trillion | $1.4 trillion |
| Eliminate personal exemptions and introduce a $500 child/dependent credit | $1.4 trillion | $1.1 trillion |
| Eliminate personal exemptions and introduce a $1,000 child/dependent credit | $1.1 trillion | $850 billion |
| Eliminate personal exemptions, leave the standard deduction at current law levels, and create an $800 per person credit | N/A | $600 billion |
| Modify Personal Tax Expenditures | ||
| Replace the Cadillac tax with a cap on the exclusion of employer-provided health insurance^ | $100 to $300 billion | $90 to $265 billion |
| Reform or eliminate the exclusion of interest for public-purpose municipal bonds | $30 to $400 billion | $25 to $350 billion |
| Repeal deduction for "cafeteria plans" | $380 billion | $330 billion |
| Include employer-paid premiums for income-replacement insurance in taxable income | $335 billion | $300 billion |
| Include investment income from life insurance and annuities in taxable income | $240 billion | $200 billion |
| Reform treatment small business wage earnings (Edwards/Gingrich loophole) | $15 to $235 billion | $15 to $40 billion |
| Reform higher-education tax preferences | $105 to $195 billion | $95 to $170 billion |
| Repeal foreign earned income and housing exclusions | $105 billion | $90 billion |
| Include VA disability benefits in taxable income | $90 billion | $80 billion |
| Repeal exclusion for miscellaneous fringe benefits | $85 billion | $75 billion |
| Repeal exclusion for employer-provided transportation benefits | $60 billion | $50 billion |
| Require EITC and CTC claimants to have a Social Security Number valid for employment* | $40 billion | $40 billion |
| Eliminate most nonrefundable personal credits | $40 billion | $40 billion |
| Eliminate "carried interest" loophole | $20 billion | n/a |
| Require derivatives to be marked to market | $15 billion | $15 billion |
| Repeal the exclusion of allowances for federal employees abroad | $15 billion | $15 billion |
| Limit deductibility of CEO compensation | $12 to $50 billion | $12 to $40 billion |
Note: Estimates are rounded and rely on CRFB calculations and multiple sources, including CBO, JCT, Treasury, Tax Policy Center, Tax Foundation, and American Enterprise Institute.
^ = Effect on income tax revenues only.
* = Includes outlay effects.
| $975 billion |