Lower Rates, Scaled-Back Preferences Among Changes in Camp's Tax Bill

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House Ways and Means Committee Chairman Dave Camp (R-Mich.) outlined a tax overhaul that lowers individual and corporate tax rates to no more than 25 percent, relying on vigorous economic growth and the scaling back of popular tax preferences to achieve the reduction.
Camp's plan, released Feb. 26, would eliminate the federal deduction for state and local taxes, impose a new surcharge on some wealthier households and hit large banks with a new tax; these are among the provisions sure to spark conversation in Congress and spur a new wave of lobbying.
The plan would repeal the alternative minimum tax, keep the credit for research and development with some changes and revamp the corporate cost recovery system by repealing accelerated depreciation of property-related expenses. The tax deduction for domestic production, valued by manufacturers and gas and oil companies, would disappear after 2016.