Tax reform time - what's in it for you...
Bottom Line: Yesterday was the big day for the official unveiling of the Republican tax plan. We'd previously been presented with a sketch that proved to be highly predictive of what's actually in the plan being perpetuated by the GOP.
The original outline was a one page blueprint for tax reform. The plan presented yesterday isn't the whole ball of wax but it was a modestly comprehensive nine page plan. It's still light on details in a few areas but the high points are pretty clear. Here's what we know and you can figure out what it means to you...
Personal Taxes:
- 3 brackets from 7
- Rates - 12%, 25%, 35%
- Standard personal deduction would jump from $6,350 to $12,000 & from $12,700 to $24,000
- Elimination of the marriage penalty / alternative minimum tax
- Eliminates all deductions except mortgage interest and charitable donations
- Ends the Estate, aka, death tax
Business Taxes:
- Flat corporate rate 20%
- Business owner pass through rate: 25%
- One-time repatriation tax for overseas business profits
Unclear:
- Expansion of existing child tax credits & a new senior tax credit
- What business deductions would still be allowed
- Income thresholds for the personal tax brackets
- The terms of the repatriation tax
Full plan: