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:

1. Repeal of the estate tax
2. Repeal of the individual alternative minimum tax (AMT)
3. One hundred percent expensing for all investments in tangible and intangible property (except real estate)
4. 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).
5. 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.
6. 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).
7. 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