Trump's Tax Plan and How It Would Affect You - The Balance

US Economy

House Ways and Means Committee Releases Tax Plan, First Step of Many

On November 2, 2017, the House Ways and Means Committee released its tax reform plan. It's based on the Trump administration plan released on September 27, 2017.

The Tax Cuts and Jobs Act would cut income tax rates, lowering the top rate to 35 percent. It doubles the standard deductionbut eliminates personal exemptions. The plan would reduce the corporate tax rate from 35 percent to 20 percent.

Here's a summary of how Trump's tax plan would change income taxes, deductions for child and elder care, and business taxes.

Income Tax Brackets

The House plan would reduce the current seven tax brackets to four. It keeps a top rate of 39.5 percent for high earners.

The Tax Act lowers income tax rates. The lowest tax bracket would be 12 percent, down from 15 percent. The middle rate would be 25 percent, down from 28 percent. The third bracket would be taxed 35 percent, down from 39.6 percent. The top bracket would retain the 39.6 percent tax rate.

The House plan creates the following tax chart. - Read More

Trump's Tax Plan: How It Affects You. Tax Chart - The Balance