Trump Tax Reform Calculator
The Trump tax reform proposal will be "the biggest tax cut and largest tax reform in history of this country," announced Treasury Secretary Steven Mnuchin on April 26th.
Although there is much more detail yet to be released, some of the highlights of the Trump proposal are as follows. Reduce the number of tax brackets from seven down to three; namely 10%, 25% and 35%. Small business owners who are setup as S-Corporations or Limited Liability companies and receive pass-through income via a K-1 or form 1065, will see their top rate reduced from 39.6% down to 15% on earnings distributions. Other features will be to double the standard deduction, eliminate the marriage penalty, the Alternative Minimum Tax (AMT) and the 3.8% Medicare surtax on net investment income introduced by the Affordable Care Act (Obamacare). For purposes of this calculator, and until we hear otherwise, we will assume that the child tax credit and personal exemption phaseouts will remain in place.
Use this tax calculator tool to help estimate your potential 2017 tax liability. We will continually refine the calculator as more information becomes available.
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