Proposed US Tax plan

Here are the known highlights of a proposed US tax plan which would still have to get passed and enacted via the US legislative system.

* experts put the tax cuts in the range of $5 trillion over the next 10 years. The net cost to the federal debt would be far less — probably in the range of $1.5 trillion

* plan nearly doubles the standard deduction to $12,000 for individuals and $24,000 for families

* it would change the number of personal tax brackets from seven to three. By simplifying the system, most Americans would be able to file their taxes on a postcard, the plan says. Individual tax rates would be 12 percent, 25 percent and 35 percent — and the plan recommends a surcharge for the very wealthy

* Deductions for mortgage interest and charitable giving would remain, but the plan seeks to end most other itemized deductions

* an increased child tax credit and opening it to families with higher incomes. The credit currently is $1,000 per child.

* a new tax credit of $500 to help pay for the care of the elderly and the sick who are claimed as dependents by the taxpayer.

* The estate tax — which is paid by those with multimillion-inheritances — would be eliminated, a boon for wealthy individuals who inherit businesses, investments and real estate

* Corporations would see their top tax rate cut from 35 percent to 20 percent. For a period of five years, companies could further reduce how much they pay by immediately writing off their investments.

* A 25% rate for pass-through businesses

* One-time repatriation tax: All overseas assets from US-owned companies will be considered repatriated and taxed at a one-time lower rate, this is designed to bring corporate profits back from overseas. Illiquid assets like real estate would be taxed at a lower rate than cash or cash equivalents, and the payments will be spread out over time. While there was no precise number given in the plan, officials have indicated the rate could end up somewhere around 10%.

* Elimination of the state and local tax deduction

Full Plan is Here

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