The “Tax Cut and Jobs Act” reconciliation was finalized this weekend. It just needs one final vote and a signature from the President. With the GDP hitting 4% growth, and tax reform completed, this should be a very merry Christmas. Here’s are the highlights from the new tax plan.
- Seven tax brackets, ranging from 10% to 37%. The highest bracket currently is 39.6, so this would be a tax cut for everyone, from rich to poor.
- No more personal exemptions.
- Double the standard deduction, 12k for an individual, 24k per family.
- Child Tax Credit doubled. Now 2k per child. 1.4k of that is refundable. You also must have a valid Social Security number to claim this credit now.
- Corporate tax rate will be 21%, down from 35.
- Creates a 20% business income deduction for up to 315k earned by pass-through businesses. This is a huge win for small businesses and entrepreneurs.
- Say is with me folks. No More Mandate! Good bye Obamacare. Now, if only I didn’t have to wait until next June to drop this terrible insurance my company was forced to offer me.
- Eliminates the corporate AMT, or Alternative Minimum Tax.
- Doubles the estate tax, or “death tax” as some call it. That should put it around 10 million per individual. So if granny dies before giving you her money, only the first 10 million is tax free.
- Reduction in SALT to 10k, from over 100k. This is the amount of local and state taxes you can deduct from your federal taxes.
- New mortgage interest deductions capped at 750k in debt. Current homeowners are grandfathered in without a cap.
All in all, this is a win for most Americans. You can go check and see how much you will save at taxplancalculator.com. I will pay a thousand less, and I’m right around 50k in income. The ones who are going to suffer are liberals in New York and California and places who have high state and local taxes. They use to be able to deduct hundreds of thousands of dollars in state and local taxes from their federal fillings. This is what happens when half the government just puts its nose in the air and refuses to negotiate with the current republican run government. Everyone will just blame Trump, its easy. They wont bother to wonder what could have been If the democrats had actually negotiated some things into the tax bill for a few votes. Instead they will stand together, unified by their hatred of our President. That’s fine, cry some more about how life’s not fair, and “muh russia!” Now you have to pay your fair share to the federal government just like this rest of the country. We will no longer subsidize your socialist ideas and sanctuary cities.