During the tempestuous election cycle one of the most hotly debated topics was Tax Reform. And now inauguration day is here…
It has been over three decades since the Internal Revenue Code has been reformed. And now the House has drafted its version and the new administration has voiced its plans.
Here are a few highlights
- Condensing tax brackets from seven to just three rates (10%, 15%, 25%)
- Eliminating personal exemptions and increasing standard deduction
- Put a cap on itemized deductions at $100,000 for single filers ($200,000 for married)
- Reduce Corporate tax rate to a maximum of 15%
- Eliminate Estate tax.
(If you would like to read more for yourself on how President Elect Trump plans to make our tax reform “Great Again”, follow this link: https://assets.donaldjtrump.com/trump-tax-reform.pdf)
But, what will these changes mean for you? Unfortunately, it’s not entirely clear, yet.
I’ve scoured the internet for clear and definitive information on what is being proposed, but honestly, the most common theme is an ever-changing array of promises. Our tax system is extremely complicated and no doubt in need of a make-over. Whether these proposed changes will accomplish economic stability and budget effectiveness is yet to be seen.
But one thing is certain, Colorado Diverse Accountancy will be right here to continue to help you through it all! Don’t hesitate to reach out with your questions, we’re here to help!