Here’s the Republican 2017 Tax Plan in Summary
See attached PDF link for details to the summary
Here are several highlights you might want to check out
- Tax relief for middle-class families.
- The simplicity of “postcard” tax ﬁling for the vast majority of Americans.
- Tax relief for businesses, especially small businesses.
- Ending incentives to ship jobs, capital, and tax revenue overseas.
- Broadening the tax base and providing greater fairness for all Americans by closing special interests tax breaks and loopholes.
The framework simpliﬁes the tax code and provides tax relief by roughly doubling the standard deduction to: $24,000 for married taxpayers ﬁling jointly, and $12,000 for single ﬁlers
To further simplify tax ﬁling and provide tax relief for middle-income families, the framework repeals the personal exemptions for dependents and signiﬁcantly increases the Child Tax Credit. The ﬁrst $1,000 of the credit will be refundable as under current law.In addition, the framework will increase the income levels at which the Child Tax Credit begins to phase out. The modiﬁed income limits will make the credit available to more middle-income families and eliminate the marriage penalty in the existing credit. The framework also provides a non-refundable credit of $500 for non-child dependents to help defray the cost of caring for other dependent
Te nonpartisan Joint Committee on Taxation (JCT) and the Internal Revenue Service (IRS) Taxpayer Advocate have both recommended repealing the AMT because it no longer serves its intended purpose and creates signiﬁcant complexity. This framework substantially simpliﬁes the tax code by repealing the existing individual AMT, which requires taxpayers to do their taxes twice.
In order to simplify the tax code, the framework eliminates most itemized deductions, but retains tax incentives for home mortgage interest and charitable contributions. These tax beneﬁts help accomplish important goals that strengthen civil society, as opposed to dependence on government:homeownership and charitable giving.
Te framework limits the maximum tax rate applied to the business income of small and family-owned businesses conducted as sole proprietorships, partnerships and S corporations to 25%. The framework contemplates that the committees will adopt measures to prevent there characterization of personal income into business income to prevent wealthy individuals from avoiding the top personal tax rate.
Te framework reduces the corporate tax rate to 20% — which is below the 22.5% average of the industrialized world. In addition, it aims to eliminate the corporate AMT, as recommended by the non-partisan JCT. The committees also may consider methods to reduce the double taxation of corporate earnings.
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