Trump on Taxes

There’s been a lot of talk lately about the tax changes President Trump is attempting to make. 

There are some changes that can be expected as a result of these plans. For example, the Senate intends to reduce the corporate tax rate to 20% in 2019 with the House doing so in 2018. The plans also call for reduced income tax rates, doubled standard deductions, and no personal exemptions.

As you can imagine, people have strong feelings about these changes, but, no matter how you feel, it’s important to educate yourself on the new plans and to be aware of how they might affect you.

Changes Galore

One of the biggest changes under the Senate plan is a lowering of tax rates, though it does keep the same general income brackets. The House Plan, however, makes it so that only four income tax brackets exist, and it does lower a few tax rates in the process.

Also, as mentioned above, the two plans eliminate itemized deductions, something that many people find upsetting. There are some exceptions to this new rule, such as charitable contributions and retirement savings, but the truth is that many of the deductions people rely on will be taken away.

These are actually just a few of a great many changes, so if you feel that you may be affected by Trump’s tax plan, it’s definitely a good idea to “dive deeper” and learn more.

And, for help surviving and preparing for the transition to Trump’s type of taxation, be sure you have a qualified CPA working on your side. It could make all the difference in how well you (and your finances) hold up once these changes go into effect.

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