I’m just getting to read this, but here are a few highlights that I think are very important to individuals. As I’ve said all along, the big winner is corporations that have more than $18.3 million of profits, because they will see their tax rate drop from 35% to 21%.<\/p>\n
(Note: Individual rate cuts would expire after 2025.)<\/p>\n
Current law:<\/strong> <\/span>Seven rates, starting at 10 percent and reaching 39.6 percent for incomes above $418,401 for singles and $470,701 for married, joint filers.<\/p>\n Proposed:<\/span> <\/strong>Seven rates, starting at 10 percent and reaching 37 percent for incomes above $500,000 for singles and $600,000 for married, joint filers.<\/p>\n For joint filers:<\/strong> For single filers:<\/strong> Current law:<\/strong><\/span> Pass-through businesses, which include partnerships, limited liability companies, S corporations and sole proprietorships, pass their income to their owners, who pay tax at their individual rates.<\/p>\n Proposed:<\/strong> <\/span>Owners could apply a 20 percent deduction to their business income, subject to limits that would begin at $315,000 for married couples (or half that for single taxpayers).<\/p>\n Current law:<\/strong><\/span> Individuals can deduct the state and local taxes they pay, but the value is subject to certain limits for high earners.<\/p>\n Proposed:<\/strong><\/span> Individuals can deduct no more than $10,000 worth of the deductions, which could include a combination of property taxes and either sales or income taxes.<\/p>\n Current law:<\/strong><\/span> Deductible mortgage interest is capped at loans of $1 million.<\/p>\n Proposed:<\/strong> <\/span>Deductible mortgage interest for new purchases of first or second homes would be capped at loans of $750,000.<\/p>\n Current law:<\/strong><\/span> Qualified medical expenses that exceed 10 percent of the taxpayer\u2019s adjusted gross income are deductible.<\/p>\n Proposed:<\/strong> <\/span>Reduce the threshold to 7.5 percent of AGI for 2018 and 2019.<\/p>\n Current law:<\/strong><\/span> A $1,000 credit for each child under 17. The credit begins phasing out for couples earning more than $110,000. The credit is at least partially refundable to qualified taxpayers who earned more than $3,000.<\/p>\n Proposed:<\/strong><\/span> Double the credit to $2,000 and provide it for each child under 18 through 2024. Raise the phase-out amount to $500,000, and cap the refundable portion at $1,400 in 2018.<\/p>\n Current law:<\/strong> <\/span>An individual who fails to buy health insurance must pay penalties of $695 (higher for families) or 2.5 percent of their household income — whichever is higher, but capped at the national average cost of the most basic, low-premium, high-deductible plan.<\/p>\n Proposed:<\/strong><\/span> Repeal the penalties.<\/p>\n","protected":false},"excerpt":{"rendered":" You’ve heard the expression, “too many fingers in the pie?” Well sometimes that can be a good thing and I think we just witnessed a very good case in point with this Trump Tax Bill. I’m just getting to read this, but here are a few highlights that I think are very important to individuals. […]<\/p>\n","protected":false},"author":1,"featured_media":2234,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"apple_news_api_created_at":"","apple_news_api_id":"","apple_news_api_modified_at":"","apple_news_api_revision":"","apple_news_api_share_url":"","apple_news_cover_media_provider":"image","apple_news_coverimage":0,"apple_news_coverimage_caption":"","apple_news_cover_video_id":0,"apple_news_cover_video_url":"","apple_news_cover_embedwebvideo_url":"","apple_news_is_hidden":"","apple_news_is_paid":"","apple_news_is_preview":"","apple_news_is_sponsored":"","apple_news_maturity_rating":"","apple_news_metadata":"\"\"","apple_news_pullquote":"","apple_news_pullquote_position":"middle","apple_news_slug":"","apple_news_sections":["https:\/\/news-api.apple.com\/sections\/74d71b26-dfe2-3cf6-9b79-55911f8259f1"],"apple_news_suppress_video_url":false,"apple_news_use_image_component":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2233","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"apple_news_notices":[],"_links":{"self":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/posts\/2233","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/comments?post=2233"}],"version-history":[{"count":0,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/posts\/2233\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/media\/2234"}],"wp:attachment":[{"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/media?parent=2233"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/categories?post=2233"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cookco.us\/news\/wp-json\/wp\/v2\/tags?post=2233"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\n10 percent: $0 to $19,050
\n12 percent: $19,050 to $77,400
\n22 percent: $77,400 to $165,000
\n24 percent: $165,000 to $315,000
\n32 percent: $315,000 to $400,000
\n35 percent: $400,000 to $600,000
\n37 percent: $600,000 and above<\/p>\n
\n10 percent: $0 to $9,525
\n12 percent: $9,525 to $38,700
\n22 percent: $38,700 to $70,000
\n24 percent: $70,000 to $160,000
\n32 percent: $160,000 to $200,000
\n35 percent: $200,000 to $500,000
\n37 percent: $500,000 and above<\/p>\nPass-Through Deduction<\/span><\/h3>\n
Individual State and Local Tax Deductions<\/span><\/h3>\n
Mortgage Interest Deduction<\/span><\/h3>\n
Medical Expense Deduction<\/span><\/h3>\n
Child Tax Credit<\/span><\/h3>\n
Obamacare Individual Mandate<\/span><\/h3>\n