With the new administration at the beginning of 2017, it’s important to take a moment in the frenzy of policy changes to focus on tax propositions that have been made by both the Trump administration as well as the U.S. House of Representatives. These plans have a lot of similar qualities.
Both proposals are consolidating the total number of individual tax brackets from seven to three: 12, 25, and 33%. Additionally, each proposal cuts personal exemptions while increasing standard deductions amounts. They also take similar stances on cutting the alternative minimum tax, and the removal of the estate tax. The Trump administration’s campaign promise to remove the Affordable Care Act would also impact taxes – cancelling 3.8% net investment income tax and 0.9% Medicare tax that people with moderately high incomes are currently facing.
As we move forward it will be interesting to see what, exactly, is changed, as tax reform directly impacts so many. Read more about the analysis of Trump’s tax plan in the full article on Columbia Daily Tribune.
As a financial planner specializing in comprehensive financial planning, Tim enjoys helping clients in Columbia, MO with managing their taxes, financial risks and other financial issues.
If you would like to learn more about this and other personal financial planning topics serviced by Clarity Financial please contact us at 573-447-7007. Clarity Financial, LLC is a fee-only financial advisory firm in Columbia, MO. Appointments are welcome and initial consultations are free.
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