Trumps Tax Plan by Thanksgiving Day ! 10 Quick Glimpse on What is Coming
News reports suggest that Trump Tax plan is likely to be billed and passed through the House by Thanksgiving day. The initial plan is expected to be released on Thursday.Here are a few things to watch out for based on a trickle of details that are leaking Thursday morning:
- The highest tax bracket will remain at 39.6%. The plan may include a fourth marginal tax bracket for people making more than $750,000 or $1 million a year.
- The state and local tax (SALT) deduction may be eliminated.
- Corporate tax may be cut to 20% from 35%
- Estate tax is likely be phased out over a few years .
- 12% Repatriation tax rate on overseas assets for US companies .
- No changes to 401(k) plans
- A 25% rate for pass-through businesses goods producers
- A larger standard deduction $12,000 for individuals (up from $6,350) and $24,000 for married couples (up from $12,700).
- Most itemized deductions wil be eliminated with the exception of deduction for charitable gifts and home-mortgage interest.
- First $1,000 of the child tax credit maybe refundable