Sep 27, 2017 Republicans Release Tax Overhaul Outline
On September 27, 2017, Donald Trump and the Republican Party released an outline of their tax overhaul plan. While this framework is not law, it shows their vision for both individuals and businesses. Below is a summary of major changes.
- Doubles the Standard Deduction (i.e., expands the 0% tax bracket) whereby the first $24,000 of income is excluded for married couples and $12,000 for individuals.
- The number of tax brackets is reduced from seven to the following three: 12%, 25%, and 35%. Currently, the lowest is 10% and the highest is 39.6%.
- Increase the child tax credit and provide a $500 credit for care of non-child dependents.
- Repeal of the Alternative Minimum Tax (AMT).
- Repeal of the estate tax and the generation-skipping transfer tax.
- Taxation of pass-through income at a maximum rate of 25%.
- Eliminate most itemized deductions but preserving the mortgage interest deduction and charitable contributions.
- 20% tax rate for corporations and elimination of AMT
- Expensing of capital investments except for structures
- Elimination of the §199/DPAD
- Continuation of the R&D Tax Credit
ABOUT ICS TAX, LLC
ICS Tax, LLC (ICS) is a consulting firm providing innovative tax planning strategies. ICS collaborates with taxpayers and their tax professionals to identify credits and incentives that reduce tax liabilities and increase profitability. ICS provides nationwide service through its seven offices throughout the United States.