On Monday night, the House Ways and Means Committee passed by party line vote a proposed amendment to the GOP tax plan by Rep. Kevin Brady (R-TX).

This evening vote followed the Tax Policy Center’s retraction of its estimate about the existing bill, citing a miscalculation of the child tax credit.

The amendment restores the tax exemption on employer-provided dependent care (up to the amount of $5,000) through 2022, treats musical copyrights as capital assets, adds a three year holding period for long term capital gains, and allows employees who receive stock options (at non-publicly traded companies) to defer recognition of that income for up to five years if they delay exercising the options.

It will introduce new requirements for the Earned Income Tax Credit, which would include accounting of self-employment earnings, require employers to provide EITC information in payroll tax returns, and increase the IRS’s authority to verify earned income amounts.

Brady’s changes limit the proposed 20% tax on payments from US companies to their foreign divisions, which drew harsh criticism due to both its effects on supply chains and the added complexity it brings to the tax code. It adds exemptions for routine returns, provides a foreign tax credit, and clarifies the calculation of ‘repatriation tax’.

The proposed 1.5% tax on the endowments of private colleges and universities has now been limited to those with assets of at least $250,000 per student (up from $100,000 per student in the original bill). While the Bradley amendment limits the impact to fewer institutions, it does not change the fact that it introduces a new source for tax income, which could lead to a slippery slope of interference, as Tyler Cowen notes.

Per Harvard’s Greg Mankiw,

“If my rough calculations are correct, the tax would cost schools like Harvard between $1,000 and $2,000 per student every year. Is there a good argument for this policy? Not that I can see.”

The bill, including the amendment, has been criticized for its effects on the deficit.

Amendments will continue to be offered through the week.