• Home
  • Personal Finance
  • Investing
  • Business
  • Career
  • Consumer
  • Debt
  • Lifestyle
  • Retirement
  • Taxes

Personal Finance News

Latest News About Personal Finance

  • Blogger Net Worths
  • Top Personal Finance Blogs
  • Blogroll

Trump Vows Biggest Tax Cut in American History

April 27, 2017 Leave a Comment

President Trump vows to unveil the biggest tax cut and the largest tax reform in American history. The existing 7 tax brackets will be replaced by only 3 tax brackets. Also, standard deduction will double while many tax breaks for the wealthiest taxpayers will be eliminate. Business tax rate will be reduced to 15%. Here’s the detail of the 2017 tax reform for economic growth and American jobs, the biggest individual and Business tax cut in American history.

Goals For Tax Reform

  • Grow the economy and create millions of jobs
  • Simplify our burdensome tax code
  • Provide tax relief to American families–especially middle-income families
  • Lower the business tax rate from one of the highest in the world to one of the lowest

Individual Reform

  • Tax relief for American families, especially middle-income families:
    • Reducing the 7 tax brackets to 3 tax brackets of 10%, 25% and 35%
    • Doubling the standard deduction
    • Providing tax relief for families with child and dependent care expenses
  • Simplification:
    • Elimination targeted tax breaks that mainly benefit the wealthiest taxpayers
    • Protect the home ownership and charitable gift tax deductions
    • Repeal the Alternative Minimum Tax
    • Repeal the death tax
  • Repeal the 3.8% Obamacare tax that hits small business and investment income

Business Reform

  • 15% business tax rate
  • Territorial tax system to level the playing field for American companies
  • One-time tax on trillions of dollars held overseas
  • Eliminate tax breaks for special interests

Process

  • Throughout the month of May, the Trump Administration will hold listening sessions with stakeholders to receive their input and will continue working with the House and Senate to develop the details of a plan that provides massive tax relief, create jobs and makes America more competitive.

Summary

President Trump’s proposal for tax reform will reduce seven federal income tax brackets to three brackets: 10%, 25%, and 35%.

The standard deduction will be double so that more taxpayers will benefit by choosing the standard deduction for simplification. On the other hand, most of the itemized deductions will be eliminated except for mortgage interest and charitable contributions. Overall, taxpayers that already used the standard deduction will see a significant saving in taxes.

The new tax proposal gets rid of Alternative Minimum Tax. Those who required to pay the AMT will be a decrease in income taxes. This change would make the tax system simpler. The tax proposal also eliminates the estate tax so that there’s no tax  when leaving property to heirs and offspring.

Lastly, the new tax proposal limits the long-term capital gains tax rate to 20%. Most taxpayers won’t be affect as the top-end tax rate for capital gain is already capped at 20% except for some special circumstances.

Related

Leave a Comment Cancel reply

Must Read

  • What's the Recommended Temperature for Vacant Home in Winter?
  • Professional Panda Cuddler as the World's Best Job for $32,000 per Year
  • How to Refinance a Paid Off Car
  • 5 Tips To Get The Best Value On An Insurance Policy
  • The Best Day of the Week to Buy Mutual Funds
  • How to Reach a Live Person at IRS to Resolve Tax Problems
  • Lost Passwords Lock Millionaires Out of Their Bitcoin Fortunes
  • More Americans Are Using 'Buy Now, Pay Later' Services To Pay for Groceries
  • How to Cash Out Pension Plan Early
  • 61% Now Living Paycheck to Paycheck

Recent Posts

  • More Americans Are Using ‘Buy Now, Pay Later’ Services To Pay for Groceries
  • 5 Tips To Get The Best Value On An Insurance Policy
  • 61% Now Living Paycheck to Paycheck
  • 36% Earning $100,000 or More Living Paycheck to Paycheck
  • Two-Thirds of Americans Live Paycheck to Paycheck
  • The Hit to Your Pocketbook From Higher Gasoline Prices: $2,000 a Year
  • Uber Now Lets You See How Many One-Star Ratings You Received From Drivers
  • Survey: 7 In 10 Americans Living Paycheck To Paycheck

Connect With Us

  • Facebook
  • Twitter
Home · About · Terms · Privacy · Contact · Copyright © 2023 · Personal Finance News