How Will Tax Reform Really Take Shape Under Trump and Ryan?
It’s no secret that both President Trump and other republican lawmakers want to change t he nation’s tax code and lower taxes across the board. However, as you might expect, they have different visions as to how to go about this. To be clear, though, both sides of the argument, namely the president and House Speaker Paul Ryan do have the same stated goals: lower the tax burden on Americans and simplify the tax code. They just don’t have the exact same plan to do get it done.
For starters, the House, led by Ryan wants to cut the tax brackets from seven to three with the numbers being 33 percent, 25 percent and 12 percent. Originally the president had proposed 25 percent, 20 percent and 10 percent, but he has since raised his numbers to match the House.
Both the president and the House want to raise the standard deductions. The House checks in at $12,000 for singles and $24,000 for married couples, while Trump wants $15,000 and $30,000 respectively. Meantime, the House wants to wipe out all itemized deductions except charitable donations and mortgage interest. Trump on the other hand wants to keep all itemized deductions but cap them at $100,000 for single filers and $200,000 for joint filers.
Both the House and Trump want to lower investment income taxes, aka capital gains. The House would like to lower the rates to half of the standard income rates:16.5 percent, 12.5 percent and 6 percent. Trump would lower them by much smaller amounts. As for corporate tax rates, Trump wants to tax all of that income at 15 percent, while the House is proposing a cut from 35 percent to 20 percent.
These are just a few of the major changes expected to take place, but there will likely be others. So stay tuned because one way or another your tax bill will be affected.
http://www.marketwatch.com/story/important-news-on-tax-filing-deadlines-and-refunds-2017-01-10
Update on Homebuyer’s Credits
Update on Homebuyer’s Credits Dear Client & Friends: On November 6, the President signed into law H.R. 3548, the ”Worker, Homeownership, and Business Assistance Act of 2009.” The new law extends and generally liberalizes the tax credit for first-time homebuyers, making it a much more flexible tax-saving tool. It also includes some crackdowns designed to prevent…
Revocable Living Trust: Family Financial Security
Revocable Living Trust: Family Financial Security The times in which we live have brought new uncertainty and increased anxiety to our front doors. With the threat of terrorism and the reality of war, our safety and that of our loved ones are at the forefront of our concerns. For many a continually disappointing investment environment…
Municipal Bonds: A Source of Tax-Free Income
[vc_row][vc_column][vc_column_text]There’s one readily available and legal source of untaxed income that we know of: municipal bonds. These securities are issued by state and local governments, school districts, hospitals and other public agencies to support community projects and services. To permit these worthy endeavors to raise money economically, Uncle Sam exempts the interest that they pay…
Employers Offer Incentives for Weight Loss
Employers Offer Incentives for Weight Loss Looking to get some extra cash from the boss? Forget logging long hours, brokering that big deal or sucking up at the company holiday party. Employer weight loss programs Employers have begun dangling big incentives, such as cash bonuses and paid days off, to encourage workers to lose weight.…