The Trump/GOP tax plan has been released. 363297702-Trump-Tax-Plan
- Lowers individual tax rates for low- and middle-income Americans to Zero, 12%, 25%, and 35%; keeps tax rate for those making over $1 million at 39.6%
- Increases the standard deduction from $6,350 to $12,000 for individuals and $12,700 to $24,000 for married couples.
- Establishing a new Family Credit, which includes expanding the Child Tax Credit from $1,000 to $1,600
- Preserving the Child and Dependent Care Tax Credit
- Preserves the Earned Income Tax Credit
- Preserves the home mortgage interest deduction for existing mortgages and maintains the home mortgage interest deduction for newly purchased homes up to $500,000, half the current $1,000,000
- Continues to allow people to write off the cost of state and local property taxes up to $10,000
- Retains popular retirement savings options such as 401(k)s and Individual Retirement Accounts
- Repeals the Alternative Minimum Tax
- Lowers the corporate tax rate to 20% – down from 35%
- Reduces the tax rate on business income to no more than 25%
- Establishes strong safeguards to distinguish between individual wage income and “pass-through” business income
- Allows businesses to immediately write off the full cost of new equipment
- Retains the low-income housing tax credit
- Proposal will call for new tax of 1.4% on endowment income at colleges and universities where the funds total more than $100k per student and will exempt small schools.
So, what are the proposed tax brackets?
If let in tact, the tax subsidy for larger/more expensive homes is reduced. It is also a tax on expensive coastal cites like New York City, San Francisco, Los Angeles and Seattle.
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The reaction for homebuilding companies?
This is the start of the process. Let’s see how the Democrats react.
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