Today the president released his new proposal for a tax reform package. It reduces the tax rate to 3 categories: 12%, 25% and 35%. I don't know what the AGI income levels are. Additionally it would reduce corporate income tax from 35% to 20%. And it would tax small business ($750,000 a year or less) pass through tax to 25%. It would eliminate the federal estate tax which means that there would be no tax federally on inheritance (state could still tax) and it would eliminate several deductions including the medical expense deduction when more than 10% of your expenses were medical expenses, education expenses, moving expenses, state tax exemption.
It would increased the individual exemption to $12,000 per person or $24,000 for a married couple.
There could be a higher income tax beyond the 35% rate but it has not yet been deal with.
The mortgage deduction would stay.
This is of course a first draft and Trump will be present his plan in Indiana tonight. Too early to know much but the two things that stand out to me are a reduction of the top rate from 39.5% to 35% and a reduction in the corporate income tax from 35% to 20%. And of course elimination of the death tax which only applies to the top 10% right now.
Nothing about capital gains. Nor was anything mentioned about corporate deductions for travel, gas, mileage etc.
Trump says it does not benefit the wealthy.
More coming in future days.