Excerpted from this New York Times article
Here are the most important changes in the US federal tax system proposed Wednesday 4/26/17 by President Trump.
- Three tax brackets; 10 percent, 25 percent and 35 percent. That lowers the top rate by nearly 5 percent.
- Double the Standard Deduction to put more money in the pockets of the average taxpayers who do not itemize their deductions.
- Repeal of Alternative Minimum Tax: This provision cost Mr. Trump an additional $31 million in federal income taxes in 2005.
- Lower the Capital Gains Tax from 23.8 percent to 20 percent, by eliminating a 3.8 percent tax that helps to fund the Affordable Care Act.
- Repeal of Inheritance Tax. Critics of Mr. Trump will likely complain that he is helping his family and rich friends.
- Preserve Schedule A deductions for mortgages and charities, and eliminate the rest. State and local taxes would no longer be deductible.
- Cut the corporate tax rate from 35 to 15 percent.