US Tax Reform Proposals Announced

by Mike Godfrey, Tax-News.com, Washington

27 April 2017

The US Government has announced its plans for tax reform, including a 15 percent territorial basis corporate tax system, a reduction in income tax for individuals, the repeal of the Alternative Minimum Tax (AMT) and the Estate Tax, and a one-time tax on repatriated profits.

The plan would also "eliminate tax breaks for special interests." The AMT, the Obamacare net investment income tax, and the estate tax, known as the "death tax", would be repealed, and the current seven tax brackets would be reduced to three. The tax rates would be 10, 25, and 35 percent, and the standard deduction would be doubled. This would mean couples with income of less than USD24,000 would not pay tax.

The plan includes "tax relief for families with child and dependent care expenses." It also commits to "protect the home ownership and charitable gift tax deductions".

The Trump Administration said that it will seek input throughout May in an attempt to create a plan that will pass both chambers of Congress.

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