Trump tax plan income brackets: Darcy cartoon

Sunday, 05 November 2017, 08:38:35 PM. Whether the Trump tax plan passes Congress and the Trump tax returns pass Mueller's legal review, remains to be seen.
CLEVELAND, Ohio -- President Trump and Republican Congressional leaders unveiled a new tax reform plan that reduces the income tax brackets from seven to four, among other major changes. Currently, the seven income tax brackets are 10 percent, 15 percent,25 percent,28 percent,33 percent,35 percent and 39.6 percent. Under the new Trump/GOP tax plan these are the four new brackets: 12 percent: on income starting from $12,000 to $45,000 25 percent: on income from $45,000 to $200,000 35 percent: on income from $200,000 to $500,000 39.6 percent on income from $500,000 The plan's objective is to reduce taxes and simplify the return form to the point that it fits on a postcard that will deliver new jobs and higher wages. Corporate tax rate would be reduced from 35 percent to 20 percent. Cost of reducing taxes  would be offset by reducing or eliminating some current deductions benefiting taxpayers in all brackets. Deductions for state and property taxes will be capped at $10,000.  While there may be changes to some mortgage interest rate deductions, the plan didn't included proposed  caps on tax breaks for popular 401K plans. To offset the loss and new caps on some deductions, the plan increases the standard deduction to $12, 000 for individuals and $24,000 for married couples. The plan also doubles the limit on the dreaded estate tax to $10 million and phases out the entire tax over six years. Titled the "Tax Cuts and Jobs Act" the reform bill before Congress is expected to go...Read more
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