President Trump recently released his tax reform plan. The proposal aims to drastically cut corporate and individual taxes. The goal is to create economic growth and American jobs, to lower the business tax rate to one of the lowest in the world, and would be one of the biggest tax reductions in American history. The proposal includes the following:
Business Tax Changes:
- 15% tax for corporations and flow-through entities
- Territorial tax system
- One-time tax on trillions of repatriated offshore dollars
Individual Tax Changes:
- Reduce the existing seven tax brackets to three (10%, 25% and 35%)
- Double the standard deduction
- Repeal the alternative minimum tax
- Repeal the estate and gift tax
- Maintain the home interest and charitable deductions while eliminating other deductions
- Tax relief for families with child and dependent care expenses
The proposal would still need to be approved by Congress, which may lead to a tax package that is different from the current proposal.
Any questions regarding the proposal and what it could mean for you or your business, may be directed to attorney Edward J. Castellani at (517) 377-0845 or email@example.com. Ed brings a distinct advantage to the Business and Tax practice at Fraser Trebilcock. In addition to having practiced law for more than 30 years, Ed is a certified public accountant. This dual background and experience provides his clients a unique insight into business transactions, such as business entity formations, mergers, acquisitions, tax audits and appeals, and general business and tax planning for both profit and non-profit corporations.