US Senate Committee on Finance Chairman Orrin Hatch [official websites] on Tuesday released changes to the Tax Cuts and Jobs Act [texts].

The proposed tax structure still follows a seven tier tax bracket with tax rates of 10%, 12%, 22%, 24%, 32%, 35%, and 38.5% while altering the income bands to which those rates apply. These tax rates for individuals would then expire on December 31, 2025 and revert back to the current tax rates. The changes include removing the individual mandate penalty for not having the minimum required coverage under the Affordable Care Act.

The changes also require that the IRS develop a simplified tax return form for persons who are age 65 or older. The form is required to be as similar to the From 1040EZ as possible and available to taxpayers of all income levels. For qualified tuition programs, such as 529 accounts, the proposal requires that the accounts be allowed to be created for unborn children in utero. This tuition program will end on December 31, 2025, due to a sunset provision.

The proposal also make several changes to business taxes. These include allowing business to claim a tax credit for wages paid to employees on family and medical leave and deducting any settlement, payout, or attorney fees related to sexual harassment or sexual abuse if the payment is subject to a nondisclosure agreement.

The tax bill was first proposed [JURIST report] by the House of Representatives earlier this month.