Elements Of “America’s Biggest Tax Cut” By Donald Trump
America’s president Donald Trump is again standing upon his another challenging decision of tax improvement. This tax slash is considered as the “biggest tax cut” in the American history. In this updated tax plan, both the business sector and general public will be freed from high tax reforms.
“We want to move as fast as we can,” Treasury Secretary Steven Mnuchin says of the Trump tax plan.
- Cut Corporate Rate
The corporate tax of 35% is now decreased to 15%. The income tax rates have also gone through a steep decrease.
- Inheritance Tax Removed
Taxes like “Death Tax” are being applied for removal. According to the Tax Foundation, Inheritance Tax on America of 2004 is the fourth highest in the world. This is considered as a burden on farmers and small business.
- Three Tax Slabs
The tax slabs for individuals is reduced from 7 to 3: 10 percent, 25 percent and 35 percent. This will ease the tax burden on most Americans including the rich.
- Double Standard Deduction
Currently, the deductions for individuals from their taxable income are $6,350 and for married couple, its $12,700, but Trump government will double this standard deduction. This step is beneficiary for average tax payers to increase more money in their pockets. This will also simplify preparations for tax return.
- “Complicated” Taxes Repeal
The Alternative Minimum Tax (AMT) will be removed which used to force rich people to pay more taxes. Taxes like Estate Tax and Obamacare Tax (3.8 percent) will also be removed. This reduction will create greater incentives for people to invest.
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