Trump/GOP Tax Plan Released (Not Large Home Friendly)

This is a syndicated repost courtesy of Snake Hole Lounge. To view original, click here. Reposted with permission.

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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 $500,000half 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?

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.

The reaction for homebuilding companies?

homebuilderpr

This is the start of the process. Let’s see how the Democrats react.

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