Republicans Unveil New Tax Plan – Here Are The 8 Things You need To Know, Summarized

  KenBricks
  2 months ago
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Republicans Unveil New Tax Plan – Here Are The 8 Things You need To Know, Summarized Image

Republicans Unveil New Tax Plan – Here Are The 8 Things You need To Know, Summarized



The House Republicans finally unveiled their tax reform plan on Thursday. It is a transformative move in terms of corporate taxes, and it should help the vast majority of individual taxpayers as well. Here is what you need to know:

1. Corporate Tax Cuts Are Slashed Dramatically – That means that the proposal lowers the corporate tax rate from 35% to 20%, putting America in the line with the U.K.
2. Individual Tax Rates Change, But Not An Enormous Amount – Meaning that instead of the current seven-bracket system, the number of brackets is reduced to four.
3. The Bill Kills Medical Expense Itemized Deduction, As Well As Adoption And Student Loan Interest – Meaning if you have extraordinary health care costs, some of these costs will no longer be deductible. The tax deductions for adoption and student-loan interest also go away.



4. The Bill Limits Mortgage Deductions – The bill will reduce the amount of mortgage interest deduction available from loans up to $1 million to loans up to $500,000. This will particularly smash people who live in high real estate value areas, which just happen to be blue overall.
5. Executive Compensation Becomes Less Deductible – Meaning that bonuses are no longer deductible for CEO, CFO and the “Three Other Highest Paid Employees” 
6. Tax Reform Package Repeals The Johnson Amendment – The abolition of the amendment that prohibited religious organizations to assume speech on political matters.
7. The Child Tax Credit Increase – The bill incised it to $1,600. 
8. Removing State Tax Deductibility – this will remove the capacity to deduct the amount to pay in state taxes from your federal income. 

This is a serious restructuring of the Tax Code, unprecedented until today. But it still isn’t enough, particularly in the individual sphere. We are on the right track.
President Trump continues to drain the swamp even as we speak. God Bless you, Sir! Share if you agree.

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