Is Tax Reform on the way?

February 1, 2017



With a new administration in our nation’s capital, there is much speculation about a significant change in our tax laws.  Campaign promises were abundant (as they usually are) covering a variety of tax reductions for individuals and corporate taxpayers.


Keep in mind the tax proposals made by the incoming administration are nowhere near becoming law, but let’s look at what they want to do.


Individual Tax Brackets


Reduce individual income tax brackets from seven to three.  Joint filers would pay tax rates of 12% up to $75,000, 25% from $75-225,000 and 33% over $250,000 (that’s down from 39.6% over $470,700).  Brackets for single filers would be one-half of those amounts. The Alternative Minimum Tax would be repealed to the great relief of taxpayers and CPAs alike.


Capital Gains Tax


Capital gains would still be taxed at a maximum of 20%, but the 3.8% surcharge (for “Obamacare”) would be repealed.


Personal Exemption & Standard Deduction


The standard deduction for a couple would go from $12,600 to $30,000, but there would be no personal exemption deduction ($4,050 per person now).  Itemized deductions would be limited to $200,000 for a couple, $100,000 for a single taxpayer.


Estate Tax


The estate tax would be repealed but capital gains, currently tax-free to heirs, would be subject to tax at death for estates over $10,000,000.


Corporate Tax


Corporations would see their tax rate lowered from 35 to 15 percent.  Many other detailed provisions would help offset some of the revenue loss from this, but those details are still sketchy.


What should one do to plan for this?  It’s way too early to make any concrete plans or adjust any tax or other planning strategies based on these ideas.  Stay tuned and be informed!

Please reload


Subscribe to our newsletter to stay up to date on investment and wealth management news

Recent Posts
Please reload

Please reload

Search By Tags
Please reload

You might also enjoy reading:

Is the Stock Market Divorced from Reality?

September 21, 2020

A Presidential Election during a Pandemic-what will that mean for the stock market?

September 21, 2020

The Stock Market Teaches Everyone a Lesson Again

June 16, 2020

Please reload


400 S Dixie Hwy Suite 322

Boca Raton, FL 33432


T: 561-391-4477

F: 561-391-8232 

Boca Raton Financial Planner
  • LinkedIn App Icon

Copyright 2020

Investment Advisory Professionals, LLC