2017 Proposed Tax Changes by the Trump Administration

2017 Proposed Tax Changes by the Trump Administration

The Trump Administration intends to introduce the following tax plan to Congress this year.  Whether or not the plan is implemented and in what form is up to Congress.  Below is the proposed Trump tax plan.

Standard Deduction

The standard deduction for single tax payers will increase from $6,300 to $15,000 and for married filing jointly the standard deduction increases from $12,600 to $30,000.

Itemized Deduction Caps

There will be limitation on the amount one can itemize, $100,000 for single taxpayers and $200,000 for married taxpayers filing jointly.

Ordinary Income and Capital Gains Taxes

The income tax brackets will be reduced from seven brackets to three brackets as stated below:

Proposed Income Tax Bracket Under the Trump Plan
Ordinary Tate Capital Gains Rate Single Filers Married Filing Jointly
12% 0% 0-$37,500 0-$75,000
25% 15% $37,500-$112,500 $75,000-225,000
33% 20% 112,500+ $225,000+

Corporate Tax Rate

The corporate tax rate will drop from 35% to 15%.

Again, these are the major proposed changes.  Other changes include proposed alterations to child care credits.

2017 Tax and Reference Guide

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Apr 10, 2017