Protecting Family and Small Business Tax Cuts Act of 2022

Protecting Family and Small Business Tax Cuts Act of 2022

This bill makes permanent provisions affecting individual and business taxpayers that were enacted in 2017 by the Tax Cuts and Jobs Act and are scheduled to expire at the end of 2025.

The bill makes permanent provisions that reduce individual and capital gain tax rates.

The bill increases the standard tax deduction for individual taxpayers. It also increases and modifies the child tax credit and raises the contribution base for the tax deduction of charitable contributions.

The bill allows additional contributions to ABLE accounts (tax-exempt accounts designed to enable individuals with disabilities to save and pay for disability-related expenses). It exempts from taxation combat zone benefits of members of the Armed Forces serving in the Sinai Peninsula of Egypt and the moving expenses of servicemembers.

Additionally, the bill

• lowers to $750,000 the amount of mortgage debt eligible for an interest expense tax deduction;
• excludes from the gross income of student borrowers income attributable to the discharge after 2025 of loan debt due to death or disability;
• makes permanent the limitation on the tax deduction for state and local taxes and denies a deduction for foreign real property taxes;
• makes permanent the tax deduction of the income of certain pass-through business entities;
• repeals the tax deduction for personal tax exemptions and the exclusion of employer-provided bicycle commuter fringe benefits;
• terminates certain miscellaneous itemized tax deductions;
• doubles the estate and gift tax exemption amount; and
• makes permanent the increase of the alternative minimum tax exemption amount for individual taxpayers.

Bill 117 HR 6658, also known as the Protecting Family and Small Business Tax Cuts Act of 2022, is a piece of legislation introduced in the US Congress. The main purpose of this bill is to provide tax relief for families and small businesses in the United States.

The bill includes provisions that aim to lower taxes for individuals and families by increasing the standard deduction and expanding tax credits for children and dependents. It also includes measures to reduce the tax burden on small businesses by lowering the corporate tax rate and providing incentives for investment and job creation.

Additionally, the bill includes provisions to simplify the tax code and make it easier for individuals and businesses to file their taxes. This includes streamlining the tax filing process and eliminating certain deductions and loopholes that complicate the tax code. Overall, the Protecting Family and Small Business Tax Cuts Act of 2022 is designed to stimulate economic growth and provide relief for American families and small businesses. It aims to make the tax system fairer and more efficient, while also encouraging investment and job creation.