27 Apr
0
The President Unveiled His Tax Reform Plan
The following are some of the things you should know.
The objective of the plan is to provide economic growth, grow the GDP to 3%, and create jobs.
Personal Tax Reform
- Repeal the AMT from individuals.
- Eliminates the death tax.
- Eliminates all tax deductions, excluding mortgage and charitable deductions.
- Zero income tax on a couple’s first $24,000 of income.
- Change the current 7 tax brackets to 3 brackets at 10%, 25%, and 35%.
- Eliminates the marriage penalty.
Know income limits where attached to the new brackets as of yet.
Business Tax Reform
- All types of businesses large or small will qualify for the business tax rate.
- Lower business tax rate from 35% to 15%.
- One-time tax on corporate earnings held overseas.
- One-time tax on overseas profits.
- 8% Obama care tax on business investment income repealed.
We will need to stay tuned to see how this all shakes out.