RELIEF: Here’s How Much You’ll Pay Under Trump’s Tax Plan the Dems Thought Wouldn’t Happen
President-elect Donald Trump unveiled his tax plan on his official website and, safe to say, a lot of people were surprised by it. How much will you be paying? Well, relief probably is on the way.
According to the website, Trump’s vision for his tax plan promised to “reduce taxes across the board — especially for working and middle-income Americans.” The vision also stated that “(n)o one will pay so much that it destroys jobs or undermines our ability to compete.”
Contrary to what the Democrats would have us believe, Trump’s vision was that his plan would “eliminate special interest loopholes, make our business tax rate more competitive to keep jobs in America” and create “new opportunities and revitalize our economy.”
Even more surprising: His plan will “reduce the cost of child care by allowing families to fully deduct the average cost of child care from their taxes … including stay-at-home parents.”
Trump’s plan is outlined below and promises to revise and update both the individual and corporate tax codes as follows:
Individual: Trump’s plan will collapse the current seven tax brackets into three brackets.
Brackets & Rates for Married Joint Filers:
Less than $75,000: 12 percent
More than $75,000 but less than $225,000: 25 percent
More than $225,000: 33 percent
Brackets for single filers are one-half of these amounts.
In addition to the above, the plan stated that it would retain the existing capital gains rate structure with the tax brackets shown above and tax carried interest as ordinary income.
The 3.8 percent Obamacare tax on investment income would also be repealed along with the alternative minimum tax.
According to The Week, Trump’s pro-family policy could help millions of struggling families. It also has been reported by The New York Times that some Democrats in Congress were willing to align with Trump to make certain that American families will be taken care of with the new tax plan and credits.
For businesses, Trump’s plan promised to “lower the business tax rate from 35 percent to 15 percent and eliminate the corporate alternative minimum tax.”
This rate would be available to all businesses, the website stated, with small and large business benefiting from it.
Compare Trump’s proposals with the current rates as reported by the Tax Foundation:
Trump’s plan eliminates the head of household filing status and condenses the seven brackets into three, as well as promising a zero percent tax on low income families.