Here’s how much your taxes could rise under Trump’s new tax plan

President Donald Trump has announced a new tax plan that he believes is a “once-in-a-generation opportunity.” During public remarks in Indianapolis on Sept. 27, 2017, Trump promised that his new proposal will “cut taxes for the middle class, make the tax code simpler and more fair for everyday Americans, [… and] bring back the jobs and wealth that have left our country.”

Specifically, the President’s tax plan aims to accomplish a number of tasks, such as:

  • Reducing the number of personal income tax brackets from seven down to three — just 12 percent, 25 percent and 35 percent
  • Doubling the standard deduction for married and single filers to $24,000 and $12,000, respectively
  • Increasing the child tax credit for children under 17 years old
  • Giving a $500 tax credit to those caring for the elderly and other adult dependents
  • Cutting the corporate tax rate to 20 percent and cutting small business tax to 25 percent
  • Eliminating the estate tax and offering write-offs for companies that move their manufacturing plants to the U.S.

Take a look at the impact this tax plan could have on businesses, the national deficit, and arguably most importantly, your wallet.

10 PHOTOS
Most tax-friendly states in America
See Gallery
Most tax-friendly states in America

10. Delaware

(DenisTangneyJr via Getty Images)

9. Mississippi

(SeanPavonePhoto via Getty Images)

8. South Dakota.

(Getty Images)

7. Alabama

(RobHainer)

6. Louisiana

(Alamy)

5. Arizona

(Dreamframer via Getty Images)

4. Nevada

(ddub3429 via Getty Images)

3. Florida

(TraceRouda via Getty Images)

2. Alaska

(yenwen via Getty Images)

1. Wyoming

(Putt Sakdhnagool via Getty Images)

HIDE CAPTION
SHOW CAPTION
of
SEE ALL
BACK TO SLIDE

How the New Trump Tax Plan Stacks Up to Trump’s Original Tax Plan

In April 2017, Trump announced his original tax reform plan, and while many of the tenets of his original proposal have remained the same, there have been some changes. Under the new plan, the lowest tax bracket would contribute 12 percent in personal income tax — a small jump up from the previous contribution of 10 percent.

The proposal for the standard deduction for married couple remains the same, but the standard tax deduction for single filers has increased. In addition, Trump has raised his proposed corporation tax rates from 15 percent to 20 percent.

What the Tax Bracket Restructuring Means for YouDon’t Miss: Stocks That Have Soared Under Trump’s Presidency

Right now, personal income taxes are broken up into seven tax brackets, but Trump has proposed consolidating the income tax brackets into only three — though his plan allows for the congressional committee to add a fourth bracket for higher incomes. Currently, the top earners pay 39.5 percent in taxes — Trump’s proposal would give high income earners a tax cut, slashing their contribution to 35 percent.

Here’s the current breakdown of federal tax brackets:

And here are the Trump proposed tax brackets:

Although income ranges have not yet been specified under Trump’s new plan, the three different income brackets will pay 12, 25 or 35 percent in taxes. This new distribution raises the tax contributions for the lowest income earners and lowers contributions for those in the highest tax bracket.

Up Next: 7 Numbers That Shaped President Trump’s First 100 Days in Office

Tax Tips After You Retire

Even if your current retirement income plan doesn't provide maximum tax benefits, you can still restructure your payment strategies to optimize your tax results.

Read More

Brought to you by TurboTax.com

How to Correct Federal Tax Returns

The IRS has a simple process in place that allows you to amend your tax return. Find out how to amend your tax return in this article on tax tips.

Read More

Brought to you by TurboTax.com

Identity Theft: 7 Steps to Reclaiming Your Identity and Keeping it Safe

As more personal information continues to be stored online, the risk of identity theft also increases. The Bureau of Justice reports that millions U.S. residents experience identity theft each year. If someone uses your personal data pretending to be you, it's a serious crime. With quick, decisive action, you can help discover the fraud, stop further damage and reclaim your identity. Here are six steps to get you on your way.

Read More

Brought to you by TurboTax.com

What Are Estate Taxes?

When someone in your family dies owning property, the federal government imposes an estate tax on the value of all that property. The law that governs estates is constantly changing and so the law may be an inconsistent from one year to the next. However, the good news is that the estate tax doesn't usually affect many American taxpayers who aren't in the top 2 percent of the nation's wealthiest people.

Read More

Brought to you by TurboTax.com
Read Full Story