This is Trumps, one page report on the #MAGA Tax Reform for Economic Growth and American Jobs. It’s very vague and provides no actual information for deep analysis. However, I appreciate any tax cuts the government can provide. For Large and Small business owners this will benefit them greatly by cutting taxes. “The plan would cut the US’s individual income tax brackets from seven to three (10%, 25% and 35%) and slash US corporate tax rates from 35% to 15%.”
So, the question is how will this affect you personally? I will explain it in simple terms and omit all the political verbiage. Well, you the average middle class citizens will see benefits when you file your taxes at the end of the year. This tax cut/reform will double the standard deduction and it will provide relief for families with child and dependent care expenses. If you paid a daycare center, babysitter, summer camp, or other care provider to care for a qualifying child under age 13 or a disabled dependent of any age, you may qualify for this tax credit. So basically, you will not see any reductions on your paycheck, however, you might save a few dollars and/or get a bigger refund when you are doing your taxes next year.
The tax cut/reform will also repeal the death/estate tax. What Trump is trying to do here is cut the taxes the government charge a person’s estate when he/she dies. Yes, you still pay taxes at death!! Rich people easily avoid this tax by moving all their estate into a Family Trust, so that legally they own no assets. So, if your loved one passes away and leave you some property or money, Uncle Sam will not get his cut. “The estate tax in the United States is a tax on the transfer of the estate of a deceased person. The tax applies to property that is transferred via a will or according to state laws of intestacy.”