The House released its much anticipated tax cut and reform bill. While there will be several revisions before the final vote, we’ll take a look at the initial winners and losers.

Corporate Tax Rate: The corporate tax rate is lowered to 20 percent from 35 percent, putting it in line with the rest of the world. It’s true that some companies already pay less than 35 percent, but many do not. Even the left-leaning Christine Legarde, Managing Director of the IMF, said the U.S. needs to lower corporate taxes. It’s time. The winner: U.S. corporations, stock investors, and the economy.

State and Local Taxes: State and local income taxes will not be deductible on federal tax returns. That makes high-tax states like California, New York, New Jersey, and Massachusetts even more expensive to live in. The winner: No income tax states like Nevada, Washington, Florida, etc.

Standard Deduction: The standard deduction is nearly doubled to $12,000 for individuals and $24,000 for couples. In exchange, some deductions are eliminated but the charitable giving deduction remains if you itemize. Fewer people will itemize so many people will have a very easy tax calculation. The loser: Charities and H&R Block.

Mortgage Interest: The mortgage interest deduction will be capped at $500,000 for new purchases, lowered from $1,000,000. That makes buying high-end housing with a large mortgage more expensive. Loser: Higher-end housing prices. 

Estate Tax: For the “death tax,” the standard exemption is doubled, and the tax is eliminated in six years. Winner: The one percenters.

Private Activity Bonds: Interest of bonds issued for new stadiums will now be taxable. Loser: Las Vegas as they fund a stadium for the Raiders.

Carried Interest: Hedge fund managers are still taxed at a low 15 percent. This is interesting because Trump, Mnuchin, and the Democrats are against it.  Minority leader Schumer is in favor, however, because he represents our country’s financial capital. We’ll see how this one plays out. 

The Deficit: There is a long-standing debate about whether lowering taxes increases or decreases the deficit. The problem is we can’t look at historical examples because spending always increases as well (it did under Reagan and Bush Sr.). In his campaign Donald Trump said he not only wouldn’t run a deficit, he would also pay off the debt. That isn’t going to happen. Because of the spending side I’ll say … Loser: Deficit.