Donald Trump unveils his tax plan. The plan lowers the corporate tax rate to 20% from 35% and drops the top individual tax rate to 35% from 39.6%.
The proposal. The tax proposal is just nine-pages. You can read the entire document on your way to work… (if you take mass transit, please don’t read and drive)
To help pay for the increase, the plan would eliminate other deductions, with the exception of the mortgage interest and charitable contribution deductions.
The biggest deduction that would be eliminated is the one for state and local taxes. That deduction primarily helps people in blue states where taxes, and often incomes, are higher.
The plan would nearly double the amount of the standard deduction and eliminate the personal exemption, a deduction based on the number of taxpayers and the dependents claimed on a return. The new, single deduction would be higher for many filers, except those who claim multiple children (it’s possible that a higher child tax credit could make up for the disparity).
Don’t buy the spin: The new tax plan is a huge giveaway to the rich The big takeaway is that it has a lot for businesses to like and lots of unanswered questions for everyone else. But one group could be hit especially hard: upper-middle-income wage earners who can deduct big state and local taxes and mortgage interest.
Remember, this is just a proposal. It can (and likely) will change significantly before it becomes law.
Most Americans don’t want — or need — a cut in their federal tax rate Nearly half of Americans owe no federal income tax at all, but they do pay taxes: payroll taxes to fund Social Security and Medicare, tariffs, excise taxes, corporate taxes, property taxes, sales taxes, state and local income taxes, and so on. If they have a problem with taxes, it’s not with the federal income tax.
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