It seems that the Trump administration will first engage in the Affordable Care Act repeal and replace before the anticipated tax reforms

Proposed:

  • Collapse of the current 7 tax brackets to 3

Rate                                           MFJ*                                       Single 

12%        Between        $30,000 & $105,000          $15,000 & $52,500

25%        Between      $105,000 & $255,000        $52,500 & $127,500

33%        Over                            $255,000                           $127,500

*Married Filing Jointly

 

(Note that the proposed Corporate tax rate of 15%)

  • Increase of the standard deduction to $30,000/$15,000 (MFJ/Single)
  • Cap on itemized deduction at $200,000/$100,000 (MFJ/Single)
  • Possible elimination of the personal exemptions
  • Possible elimination of the Head Of Household filing status
  • Elimination of the individual mandate
  • Capital gain: no change maximum rate 20%
  • Repeal of 3.8% tax on investment income
  • Repeal of AMT

To be continued as new information emerge from The White House and/or Congress

I created this blog to help understand certain basic aspects of proposed U.S. tax reforms. Of course, the discussion between Congress and the White House is ongoing and many things could change before the propositions are finalized into laws.
 

Please do not hesitate to contact me should you have any question

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