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Income Tax Experts in Sacramento
Trump’s Income Tax Plan
The Trump plan will lower the business tax rate from 35% to 15%, and will eliminate the corporate alternative minimum tax. This rate is available to all businesses, both small and large, that want to retain the profits within the business.
Individual Income Tax
Tax Rates Brackets and rates for married-joint filers:
Less than $75,000: 12%
More than $75,000 but less than $225,000: 25%
More than $225,000: 33%
*Brackets for single filers are half of these amounts
The Trump plan will retain the existing capital gains rate structure (maximum rate of 20%) with tax brackets shown above. Carried interest will be taxed as ordinary income.
The 3.8% Obamacare tax on investment income will be repealed, as will the alternative minimum tax.
Deductions The plan will increase the standard deduction for joint filers to $30,000, and the standard deduction for single filers will be $15,000. The personal exemptions will be eliminated, as will the head-of-household filing status.
Itemized deductions are not allowed above $200,000 for married-joint filers or $100,000 for single filers.