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President Donald Trump would implement some significant tax changes based on what it was proposed during his campaign. \u00a0On January 23, 2017 he said from his chair in the Roosevelt Room at the White House \u00a0\u201cWe are going to be cutting taxes massively for both the middle class and for companies\u201d.<\/p>\n
Individuals Individuals earning $112,500 and $190,150 and families earning between $225,000 and $231,450 will see 2\u00a0percent – 5\u00a0percent increase in their taxes. \u00a0Under these reforms, taxpayers making between $48,652 and $88,148 annually would save between $1,174 and $7,052, according to the Tax Foundation.<\/span><\/p>\n The plan also would increase the standard deduction as follows: For single filers from $6,300 to $15,000 and for married couples filing jointly from $12,600 to $30,000. \u00a0In regards the caps itemized for deductions would be $100,000 for single filers and $200,000 for married couples filing jointly.<\/span><\/p>\n It seems like the proposed plan will not benefit all taxpayers, Mr. Trump\u2019s plan will potentially annul personal exemptions for taxpayers and their dependents as well as the head of household filing status. Consequently, single parents with dependent children and most married households with at least three dependents would pay more in federal income taxes. \u00a0<\/span><\/p>\n Corporations Estate Tax Are you wondering when will the changes take effect? It is still unknown, for now we need to wait until it is discussed in congress and becomes law. \u00a0In the meantime, remember to take care of your 2016 tax liabilities. If you are not sure how to follow up with your tax responsibilities, give us a call. Our tax specialists at Rosillo & Associates will be happy to assist you. <\/span><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" President Donald Trump would implement some significant tax changes based on what it was proposed during his campaign. \u00a0On January 23, 2017 he said from his chair in the Roosevelt Room at the White House \u00a0\u201cWe are going to be…<\/span><\/p>\n
\n<\/b>For individual taxpayers the new tax plan is looking to lower personal income tax rates from seven to three brackets, \u00a0meaning 12\u00a0percent, 25\u00a0percent\u00a0and 33\u00a0percent. Americans who make less than $75,000 would pay 12\u00a0percent, Americans with earnings between $75,000 and $225,000 would pay 25\u00a0percent and those with incomes of more than $225,000 would pay 33\u00a0percent. <\/span><\/p>\n
\n<\/b>American business would also have a substantial tax benefit, President Trump said the new administration will slash the corporate tax rate to between\u00a015\u00a0percent and\u00a020\u00a0percent; down from the current level of 35 percent.<\/span><\/p>\n
\n<\/b>The tax change also proposed to abolish the estate tax or commonly known as the \u201cDeath Tax,\u201d which only applies to estates worth more than $5.45 million for individuals and $10.9 million for couples. <\/span><\/p>\n