Trump's Tax New Plan
Entrepreneurs and small
business owners are directly connected to the tax rate that President Trump
proposed. This tax plan will affect business. Everyone is thinking that how
much they will make? It would be more or less? Businessmen are trying to be prepared
for to deal with the new tax plan. What is going to change businessmen should
know to plan their business to make it more profitable. For most of the
businessmen tax rate is directly effects growth rate. Tax rate affects all
types of business including Sole proprietors, LLCs, partnerships, and S
Corporations and business owners have to pay income tax from their income which
they earn from their business. So how Trump’s tax plan will be, have a look.
Trump wants to define a tax
plan which is easy and less complex. His tax plan is currently will be divided
into three buckets in the new tax structure where old one has seven categories.
People with income from $0-$75,000 – 12%, $75,001-225,000 – 25%, more than
225,000 – 33% will be charged.
There is another important
difference to be noticed that soon it will be soon take under Trump
administration is deduction. The current deduction rate for singles is $6,350
and for married people it is $12,700 in the 2017. This deduction will be jumped
to $15,000 for singles and to $30,000 for married.
Elimination of personal
deduction is another important change which cannot be avoided and will highly affect.
All personal exemptions which is currently $4,050 will be completely
eliminated. In simple words we can say that Trump’s new tax plan would be
abolish dependent and personal exemption which would be biggest problem for the
big families whose tax amount will be increase. Trump’s tax plan will be raised
personal deduction which will be positive for small business and entrepreneurs.
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