Trump’s Tax Proposal, What’s in it for You?
Tax Planning – Plan * Execute * Triumph
Tax Planning – Trump’s Tax Proposal. Are you curious what might happen to your taxes under the new proposal? Do you have any idea how you might be impacted? Here are the bullet points of the proposed changes President Trump’s plan included:
• Cut brackets to three: 12-25-35%
• Double the standard deduction
• Unspecified new relief for families with children and dependent care costs
• Eliminate itemized deductions other than mortgage interest and charitable gifts
• Repeal Alternative Minimum Tax
• Repeal “Obamacare” 3.8% tax on net investment income
• Repeal additional 0.9% Medicare tax on earned incomes over $200,000
• Repeal Gift & Estate Tax
• Cut top rate to 15%, including on pass-through income
• Eliminate “tax breaks for special interests”
• Impose repatriation tax to bring back accumulated profits of foreign subsidiaries
• Move to “territorial system” (taxing companies on U.S. earnings only) to “level the playing field for American companies”
On April 26, Treasury Secretary Steve Mnuchin released the administration’s one-page “first draft” of their plan to cut taxes. What effect will this proposal have on the amount you pay? Keep in mind that this is just a proposal. The final legislation, if anything is passed, will more than likely be significantly different than what is outlined herein. But, better to be prepared than to be caught off guard. Tax planning is a proactive service and not a reactive process. The objective now is to find where the opportunities exist for you and plan to take maximum advantage of the changes if they are implemented. If you would like to experience true formal tax planning and if you would like an analysis of the impact of these changes on your personal or business tax situation, please call our office and set-up an appointment, (615) 678-4751.