Tag Archives: standard deduction trump

President Trump proposes tax plan with three tax brackets: 12%, 25%, and 35%. And, New Corporate rate of 20% to boost Jobs.

File my taxes on a postcard !

The FILE on a Postcard idea is a New High Tech Innovation. The goal is to get most people’s tax returns down to one page which will save billions of hours of productivity and produce less audits.

Top Rates:  The top rate would be a true 33%, with the top rate on capital gains and dividends a true 20%. There could be a surcharge higher rate on the Super Rich.

Standard Deduction: The plan nearly doubles it to $24,000 for married taxpayers filing jointly and $12,000 for single filers.

Corporate Tax: The Trump plan leans the corporation rate down to 20%.  Presently, it is the WORST in the world of 35% or higher.

Section 179 –  A key innovation for businesses is immediate expensing of any equipment purchases known as Section 179 deductions. * With NO cap or limits, the proposal states new depreciation of assets would officially start Sept. 27, 2017, even though it is not law yet.
Child Care & Elder Care – It would boost child tax credits from $1,000 up to a much higher amount to help working families, and create  $500 tax credits per family for the elder family members or other non-dependents.

Entity Tax:  Most pass through companies such as an LLC could elect to pay at the 25 percent rate rather than the higher progressive income tax rates on the regular Schedule C 1040 or 1065 reporting.

How much will a new code add to the debt? It will reduce the debt if people are lifted from public assistance. Every person that gets a job takes several people off of public taxpayer funded programs. If people from the other 180+ countries bring their money and jobs to the USA because of the fair rates of tax, the debt will further be reduced.

State Tax:  The Total Net Fed and State Tax Rate would be reduced because of the new rates combined with the : deduction that would be eliminated for state and local taxes.

Estate Taxes: While the goal is to eliminate excessive taxes on children, analysts say that the Estate Tax may be a bipartisan agreement which allows families and small business owners to keep up to 10-15 million without any estate taxes depending on the number of children and grandchildren.

Itemized Deductions:  The administration wants to mitigate tax breaks that benefit the wealthiest taxpayers.

Holding Companies:  Congress and Trump want to prevent the creation of holding companies that merely own stock or securities using entities and getting tax breaks.