**Major Takeaways From the New Tax Plan**

Hello Steemians,

Last Thursday, November 2nd, the House released the new tax plan.

Please keep in mind that this tax plan is tentative and will likely be much different than it is now when all is said and done.

Below are some key takeaways that I have piled together.

New Income Brackets and Rates

• The new plan will reduce the current seven tax brackets to only four...12%, 25%, 35%, and 39.6%
  • The 12% rate includes income ranging between $0-$49,999 (single)
  • The 25% rate includes income ranging between $45,000 - $199,999 (single)
  • The 35% rate includes income ranging between $200,000 - $499,999 (single)
  • The 39.6% rate includes income ranging between $500,000 +

*Please note that the income brackets for married families are simply doubled.
These rates will likely result in more money in the pockets of middle class families.

• Standard deduction doubles...itemized deductions limited
  • The new proposal increases the standard deduction from $6,000 to $12,000.
  • The tax plan eliminates itemized deductions, except for those on charitable contributions, mortgage interest, property taxes, and retirement savings.

*This will likely simplify the tax code because of the huge increase we will see in people taking the standard deduction rather than itemizing.

• New Corporate Tax Rate
  • The corporate tax rate will now be taxed at a top rate of 20%, rather than the old 35% rate.
  • There are also many favorable business changes, such as wider applicability of the cash method, smaller applicability of Section 263A, and unfavorable business changes such as limitations on net operating losses and business interest.

*Will this new rate benefit the workers or the shareholders? Only time will tell.

There are many other changes in the new tax plan that I did not discuss. Capital gain/dividend rates, the AMT tax, personal exemptions and more have altered so make sure you check it out for yourself.

Overall, I like the new tax plan..although I am sure it will be much different after the House and Senate work out the kinks. I believe that middle class families and corporations will benefit most from the new plan. However, people in states such as New York and California will be hurt because the deduction on state and local taxes was eliminated.

I hope this helped you get an idea of how the new tax plan will affect you and your family. As always, you should continue researching so you can gain a more thorough understanding.

Keep steemin' on