Last week we went over the primary effects and differences between Donald Trump’s tax plan and the tax reform proposal from the House GOP. Unless you were following closely, you may have glossed over some of the specifics. Instead of a new topic this week, we put together a tax reform chart summarizing the two proposals, side-by-side.
| Trump Tax Plan | House GOP Plan | |
|---|---|---|
| Income Tax Brackets | Condense Marginal Brackets 12%: $0-$75,000 25%: $75,000-$225,000 33%: $225,000+ Income ranges for married filers. Halved for single filers. |
Condense Marginal Brackets 12%: Unspecified Range 25%: Unspecified Range 33%: Unspecified Range |
| Investment Tax Brackets | 0% 15% 20% |
6% 12.5% 16.5% |
| Treatment of Bond Interest | Ordinary Income | Investment Income |
| Medicare Surtax on Investment Income | Repeal | Repeal |
| Standard Deductions | Single: $15,000 Married: $30,000 |
Single: $12,000 Single w/Child: $18,000 Married: $24,000 |
| Itemized Deductions | -Keep all -Cap at $200,000 (married), $100,000 (single) |
-Eliminate all except Mortgage Interest & Charitable |
| Personal Exemption | Repeal | Repeal |
| Alternative Minimum Tax (AMT) | Repeal or Moot | Repeal or Moot |
| Expansion of Tax Code | Above the Line Deductions -Child Care -Eldercare -Dependent Care Savings Account (DCSA) |
None |
| Dynamic Scoring (Effect on Federal Budget)
|
Negative | Neutral |
Once you determine that it might be time to work with a financial advisor, it’s important to find the right advisor for you and your family. We’ve put together a guide of questions that are essential to ask an advisor before you hire them.
20 Questions to Ask a Financial Advisor
Don’t make a mistake by working with the wrong financial advisor. Ask the right questions the first time to determine if a financial advisor is right for you.
If you’re looking for a wealth manager and financial advisor that puts you first, call Ferguson-Johnson Wealth Management today!
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