Earlier this week President Trump outlined his new tax proposal.  Many details are still forthcoming, and there are still a lot of questions, but below is a quick summary of some of the more important pieces of the plan.

The proposal seeks to reduce the number of individual tax brackets from seven to three.  The new tax rates would be 10%, 25%, and 35%.  However, we do not yet know how much income will be captured in each bracket so it’s impossible to know what potential savings there might be.  The proposal would also double the standard deduction (from $6,350 to $12,700 for single individuals, from $12,700 to $25,400 for married individuals).

President Trump has also proposed the removal of most deductions (except for those for mortgage interest and charitable contributions) as well as repeal a number of taxes, including the Medicare surtax.

Business tax rates would drop from a high of 35% for C Corporations to 15%.  This would also apply to pass through entities such as S Corporations and LLCs that currently pay based on the individual owners’ tax rates.

We’ll continue to watch as more information becomes available and will keep you informed as we learn more.