Trump’s Tax Plan

1. Individual Income Tax Rate

Tarif berlaku s.d 2025

Income Tax Rate Income Levels for Those Filing As:

2017 2018-2025 Single Married-Joint
10% 10% $0-$9,525 $0-$19,050
15% 12% $9,525-$38,700 $19,050-$77,400
25% 22% $38,700-$82,500 $77,400-$165,000
28% 24% $82,500-$157,500 $165,000-$315,000
33% 32% $157,500-$200,000 $315,000-$400,000
33%-35% 35% $200,000-$500,000 $400,000-$600,000
39.6% 37% $500,000+ $600,000+

 The deduction for married and joint filers increases from $12,700 to
$24,000
 eliminates personal exemptions As a result, some families with
many children will pay higher taxes despite the Act's increased
standard deductions.
 The Act eliminates most itemized deductions. That includes
moving expenses, except for members of the military.
 It keeps deductions for charitable contributions, retirement savings,
and student loan interest.
 The Act limits the deduction on mortgage interest to the first
$750,000 of the loan. Taxpayers can deduct up to $10,000 in state
and local taxes. They must choose between property taxes and
income or sales taxes. This will harm taxpayers in high-tax states
like New York and California.
 The Act increases the Child Tax Credit from $1,000 to $2,000.
Even parents who don't earn enough to pay taxes can claim the
credit up to $1,400. It increases the income level from $110,000 to
$400,000 for married tax filers.
  It allows parents to use 529 savings plans for tuition at private and
religious K-12 schools. They can also use the funds for expenses for
home-schooled students.
 The Act doubles the estate tax exemption to $11.2 million for
singles and $22.4 million for couples. That helps the top 1 percent of
the population who pay it. These top 4,918 tax returns contribute
$17 billion in taxes.

 Business Tax Rate

The Act lowers the maximum corporate tax rate from 35 percent to
21 percent,
It raises the standard deduction to 20 percent for pass-through
businesses.
The Act limits corporations' ability to deduct interest expense to
30 percent of income
It allows businesses to deduct the cost of depreciable assets in
one year instead of amortizing them over several years. It does not
apply to structures. To qualify, the equipment must be purchased
after September 27, 2017, and before January 1, 2023.
The Act eliminates the corporate AMT. The corporate alternative
minimum tax had a 20 percent tax rate that kicked in if tax credits
pushed a firm's effective tax rate below 20 percent.

Seven Ways It Affects You

1. High Income: If you have a very high income, the tax plan helps you the
most. The Tax Foundation said those who earn more than 95 percent of
the population would receive a 2.2 percent increase in after-tax
income. Those in the 20 to 80 percent range would receive a 1.7 percent
increase. The Tax Policy Center said those in bottom 20 percent would
only receive a 0.4 percent increase.
2. Heirs to Wealth: If you inherit a lot of money, the larger exemption for the
estate tax will benefit you.
3. Few Deductions: If your itemized deductions are less than the new
standard deduction, you win on two levels. First, the larger standard
deduction will reduce your taxes. Second, you can skip the complicated
process of itemizing. That not only saves you time but also money if you
no longer need to pay a tax advisor.
4. Large Families: You may be hurt by the elimination of personal
exemptions. The higher credits for children and elderly dependents may
not be enough to offset that loss.
5. Homeowners: If take out a new home equity line of credit, you can only
deduct the mortgage interest if you use it to buy or improve a home. If you
take out a new mortgage or refinance an existing one, you can only deduct
the interest up to the limit. If you live in a state with high property taxes,
you can only deduct the first $10,000.
6. Young People: Since young people are generally healthier, they are more
likely to benefit from the elimination of the Obamacare tax.
7. Self-employed: If you are a 1099 contractor, own your own business, or
are self-employed, you may benefit from the 20 percent deduction on
qualified income.