Last week we went over the primary effects and differences between Donald Trump’s tax plan and the tax reform proposal from the House GOP. Unless you were following closely, you may have glossed over some of the specifics. Instead of a new topic this week, we put together a tax reform chart summarizing the two proposals, side-by-side.
|Trump Tax Plan||House GOP Plan|
|Income Tax Brackets||Condense Marginal Brackets
Income ranges for married filers. Halved for single filers.
|Condense Marginal Brackets
12%: Unspecified Range
25%: Unspecified Range
33%: Unspecified Range
|Investment Tax Brackets||0%
|Treatment of Bond Interest||Ordinary Income||Investment Income|
|Medicare Surtax on Investment Income||Repeal||Repeal|
|Standard Deductions||Single: $15,000
Single w/Child: $18,000
|Itemized Deductions||-Keep all
-Cap at $200,000 (married), $100,000 (single)
|-Eliminate all except Mortgage Interest & Charitable|
|Alternative Minimum Tax (AMT)||Repeal or Moot||Repeal or Moot|
|Expansion of Tax Code||Above the Line Deductions
-Dependent Care Savings Account (DCSA)
|Dynamic Scoring (Effect on Federal Budget)
Once you determine that it might be time to work with a financial advisor, it’s important to find the right advisor for you and your family. We’ve put together a guide of questions that are essential to ask an advisor before you hire them.
Don’t make a mistake by working with the wrong financial advisor. Ask the right questions the first time to determine if a financial advisor is right for you.