Many people are anxious to know the details of our country’s financial future. Finally, after several months of anticipation, the Trump Administration’s tax proposal has been released. The tax proposal was drafted on one-page paper. It will still be going through many revisions. Here are the details of the original tax proposal:

For Individual:

The tax current seven federal tax bracket will be changed from 10%, 15%, 25%, 28%, 33%, 35%, and 39.6% to three federal tax brackets 10%, 25%, and 35%. The income levels for a particular tax bracket have not been announced yet. The standard deduction for (single, married filing jointly, married filing separately) would be doubled. The tax relief for families with child and dependent care expenses would be improved. The plan provides the protection for home ownership and charitable contribution tax deductions. The Alternative Minimum Tax and death tax would be permanently repealed. The tax proposal would repeal the Obamacare tax and penalties. It would continue to support some subsidies.

For Businesses:

The main change is for C corporations. Their tax brackets would be changed from progressive to flat tax rate: the highest tax rate 35% will drop to 15% flat rate.   By decreasing the tax brackets, the Trump Administration plans to create new jobs and make America more competitive.

The Trump Administration by implementing these tax strategies hopes to grow the economy, create millions of job, and simplify the tax code. The tax plan provides the tax relief for American families, especially middle-class families with young children. The tax proposal will be going through many revisions. During the month of May 2017, there will be listening sessions where any stakeholders may share their opinions that will be taking in consideration. The Trump Administration will be working with the House and Senate to improve the tax code and provide the tax relief for individuals and businesses.

May 5, 2017

Here are other articles that might be interesting to read:

Forbes Magazine: “Trump tax plan: Much work still to be done” 

Accounting Today: “Trump’s 15% corporate tax seen as ‘gambit’ as he unveils plan“

Market Watch: “Opinion: What Trump’s tax plan means for your retirement”

Financial Executives International: “5 Things Financial Executives Should Know About the Looming Tax Reform Battle”

Shots: “GOP Bill Would Repeal Obamacare Taxes And Penalties, Keep Some Subsidies“