FINRA's BrokerCheck

Details of GOP tax reform plan released

On Sept. 27, 2017, Republicans released their Tax Reform Unified Framework that they expect will improve and accelerate economic growth.

The proposed plan reduces the number of individual tax brackets from the current seven to three, 12 percent, 25 percent and 35 percent. The tax committees have leeway to create a higher fourth rate for wealthier individuals.

The plan would keep the mortgage interest and charitable contribution deductions and eliminate other deductions.

Pass-through businesses would be taxed at a rate of 25 percent. The plan repeals the alternative minimum tax (AMT) and the estate tax, and would also shift to territorial taxation of global American companies. The framework also plans to drastically lower rates for corporations to 20 percent from 35 percent, and provide for immediate expensing for five years of the cost of fixed asset investments in the year they were made.  

Key elements are still missing from the plan and will be developed in detail by the tax-writing committees. We will provide more details as they are released.

Contact your advisor today with any questions or concerns.

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