President Trump: Your New Tax Santa Claus Baby?
Today's guest post comes Aquiles Larea. Aquiles is the Founder and CEO of Larrea Wealth Management in New York City.
Let’s talk a little about how President’s Trump's tax plan affects you and some of the takeaways. With a Republican controlled Congress, he may get some traction with these initiatives.
Some starting points:
Let’s start with any taxpayer making $48,000 to $83,000 would save about $1,000.
People who are making more than $3.7 million in a year might receive about $1 million in tax savings.
He's also talking about a three federal tax bracket system, so 12%, 25%, and 33%.
The top rate goes from 39 to 33%. By the way, during the Eisenhower administration, it was over 80%.
Other changes proposed:
President Trump also wants to increase the standard deduction from $15,000 for single filers and $30,000 for joint - for married couples filing jointly.
He's also trying to eliminate the 3.8% tax on net investment income, so if you have a modified adjusted gross income of over $200,000 for filing single and $250,000 for married couples filing jointly.
He's also looking to repeal the alternative minimum tax and the estate tax.
So the takeaway is that it's yet to be seen whether President Trump is Santa with tax gifts or lumps of coal. The answer to whether it's true or not depends on a few factors:
Whether Congress is going to pass these tax cuts
How is this going to be paid for?
Ah the devil is in the details.
How it affects you
The answer to which, in my experience, can change the same way as the winds blow in the Northeast.
My question to you: Shouldn’t you prepare yourself anyway? Stay tuned.