The Trump adminstration has announced the outlines of a tax reform plan. Here are 5 key elements of the plan.
• The package will increase the standard deduction for individuals while eliminating most deductions except those for the mortgage interest and charitable donations.
• The number of income tax brackets will be cut from from seven to three, with a top rate of 35 percent and lower rates of 25 percent and 10 percent. It is not clear what income ranges will be for each bracket.
• The plan includes a vastly reduced business tax rate of 15 percent, compared to the current 35 percent, for corporations. It will also apply to companies that now pay taxes through the personal income tax code – from mom-and-pop businesses to Trump's own real estate empire – which currently face a top rate of 39.6 percent.
• The plan eliminates the estate tax, which primarily affects wealthy Americans.
• The plan includes a "one-time tax" at a rate to be determined on the trillions of dollars held by corporations overseas.
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