How will incoming President Donald Trump’s tax plan affect individual and corporate taxpayers alike? Trump has promised on several occasions that his new tax scheme will help most individual, business and corporate taxpayers save taxes. Some of the plan’s provisions will lower the business tax rate from 35 percent to 15 percent. He says that he will reduce the seven individual tax brackets that are currently used to only three. His plan adapts the current rates for qualified capital gains and dividends to these three new brackets. Also of significance is that the new tax plan will eliminate the net investment income tax and the individual and corporate alternative minimum taxes.
The Effects Of Trump’s Tax Plan On Individuals And Businesses
Donald Trump’s most current tax plan promises to save taxes for most individual taxpayers. One way is the elimination of the alternative minimum tax. What are some other ways? Trump’s tax plan:
- Adapts the current rates for qualified capital gains and dividends to the new brackets.
- Eliminates the head of household filing status.
- Eliminates the Net Investment Income Tax.
- Increases the standard deduction from $6,300 to $15,000 for singles and from $12,600 to $30,000 for married couples filing jointly.
A Discussion Of New York State Income Tax Deductions
Income tax deductions are expenses that may be deducted from pre-tax gross income. Of course, deductions reduce New York income tax and maximize a refund. One of the experienced tax professionals at the Thorgood Law Firm can assist any New Yorker in determining the deductions for which they qualify under New York law.
New York has a standard state income tax deduction. For 2015, they are as follows:
| Filing Status | Amount of Standard Deduction |
| Single (and can be claimed as a dependent on another taxpayer’s federal return) | $3,100 |