Trump Tax Plan: How it will affect you - WBRC FOX6 News - Birmingham, AL

Trump Tax Plan: How it will affect you

(Source: WBRC Video) (Source: WBRC Video)

Stewart Welch breaks down President Trump's plan.

PERSONAL: Think 'Tax Simplification'
Reduce number of tax brackets from 7 to 3 (10%; 25%; 35% versus 10%; 15% 25%; 28%; 33%; 35%; 39.6%)
Eliminate the Alternative Minimum Tax (AMT)...HUGE
Eliminate the 'Obamacare Tax'- 3.8% on net investment income
Restrict itemized deductions to two: Mortgage Interest & Charitable Contributions
Raise Standard Deduction: 
Single Filer: $12,600 v. $6,300
Joint Filer: $24,000 v. $12,700

BUSINESS: Think 'lower taxes'
15% tax on business profits (down from 35%)- in addition to C-corps, includes S-corps and partnerships.  Affects big and small businesses

OTHER: 
Repeal the death tax (estate tax)- Currently the death tax exemption = $5,490,000 (2X for couples)

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