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What Are The Main Items On Trump's Tax Reform Agenda?
President Donald Trump is making tax reform one of the top priorities in the early days of his administration. Although there are no guarantees, some or all of his proposals may be approved by a Republican-led Congress, possibly with modifications. These are among the key items on the agenda:
- Replacing the seven-tier income tax rate structure for individuals with three brackets of 12%, 25%, and 33%.
- Eliminating some itemized deductions or limiting the dollar value of deductions claimed on personal returns.
- Reducing the top corporate income tax rate from 35% to 15%.
- Repealing the estate tax and replacing the step-up in basis for inherited assets with a carryover basis rule or income tax consequence at death.
- Repealing the 3.8% surtax on net investment income.
- Repealing the alternative minimum tax.
- Curbing the benefits of stretch IRAs.
- Providing immediate deductions for investments in businesses.
- Doubling the maximum Section 179 allowance from $500,000 to $1 million and revamping depreciation deduction rules.
- Revising tax benefits for child-care expenses, including a new deduction and tax-favored savings accounts.
- Implementing a one-time 10% repatriation tax for multinational corporations.
We will provide more details if and when any of these provisions are enacted into law.