Initial Overview of Tax Proposal

Today the Administration released an initial overview of the upcoming proposal. Our anticipation for today’s release was significantly greater than what details were actually given.  The plan has not yet been released and what was discussed today was simply a broad overview. However, this does give us an initial look of what will come in the following months.

Sadly, there has been no specific date given for when actual details will be available.  We will post updates as they come in. In the meantime we’ve assembled the few details currently available. We, like many, have more questions than answers. Take the following for what it is, our summary of the limited information available.

  • 3 tax brackets (but really 4) – No Income brackets yet
    • 0% $0-$24,000 (Possibly for MFJ)
    • 10%
    • 25%
    • 35%
  • Double the current Standard Deduction
  • Eliminate alternative minimum tax
  • Eliminate 3.8% Medicare tax on net investment income
  • Eliminate Estate tax
    • Immediately Remove
  • Eliminate nearly all deductions except:
    • Mortgage Interest
    • Charitable Contributions
    • Retirement Savings
  • Corporate Rate reduced to 15%
    • Possibly on S Corps as well
      • Available to small and medium size business and corporations
      • Rules in place so wealthy people can’t create pass-through to avoid paying higher tax rates
    • Territorial System
      • S. Companies pay tax on income related to U.S. activities not on income earned outside of the U.S.
  • One time tax on overseas profits

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