A New President With Promises of Tax Reforms
It’s a new dawn, a new day and we have a new President.
Whether we enjoy the benefits of the reforms he has promised remains to be seen. For those of you who are not aware of the promises Trump has made regarding tax reform, I’ve provided them for you below.
Donald Trump’s tax plan calls for lowering taxes across the board and reforming the tax code overall.
Here are his proposed tax plans:
- Consolidation of the tax brackets into three with the biggest tax cuts going to middle class workers who are married with children. Tax rates would be: 12%, 25% or 33%.
- Lower the business tax rate to 15%.
- Closes special interest tax breaks
- Eliminates the “net investment income tax”
- Caps itemized deductions at $100,000 for single filers and $200,000 for married filers
- Makes the standard deduction $15,000 dollars for single individuals and $30,000 for married couples
- Eliminates the head of household filing status
- Eliminates the personal exemption and provides an “above the line” child care deduction from adjusted income for children up to 13 years of age for average child care expenses. This deduction would be phased out for individuals earning $250,000 or married taxpayers earning $500,000.
- Adds credits of up to $1,200 a year for child care costs as “spending rebates” for low-income taxpayers thru the earned income tax credit.
- Taxes carried interest at ordinary income rates instead of the current capital gains rates that currently aid Wall Street financial professionals
- Repeals the death tax and eliminates the individual alternative minimum tax
So there you have it. If all goes according to Trump’s plan it looks like pretty much everyone will be affected. 2017 promises to be an interesting year.