As President Trump has decided to shift his focus on Taxes, here is what to expect from it.
President Donald Trump has indicated that now he would be focusing on tax reform plans. This happened after healthcare bill pulled off in the House of Representatives by Republican leaders last week. Everyone knows what president has promised during his campaign, but none of us have an idea about final tax reform bill.
What president wants to do?
In order to match up with the GOP platform more closely, President Trump has modified the final version of tax plan that was much talked topic during his campaign. President wants to simplify the tax structure for personal income taxes by cutting the seven tax brackets into three. Apart from eliminating marriage penalty for single taxpayers, he will also be eliminating the head-of-household filing status.
In this the good news is, Trump would likely to expand the tax benefits for families and would be offering lower-income parents some child care tax breaks. For child care expenses, there is larger allowable deduction (even if taxpayer itemizes or not) and this would be allowed for up to four children, which was earlier two as per the current law.
Trump wants to give relief from estate tax to wealthy section, which was on the list by Republican. They wanted to eliminate the estate tax for wealthy people as they are taxed more than $5.45 million. And, even after being taxed once they were taxed again upon death, which is very unfair.
At last, president wants to cut the corporate tax rate to 15%, which is currently 35%. And, he will be allowing companies, who have huge stockpiles of cash from overseas, to repatriate money at a one-time discounted tax rate.