During his campaign, President Trump promised big policy changes in many areas, including taxes. For individuals, he proposed fewer tax brackets and lower top rates. With this, Trump would eliminate head of household filing status, which will provide favorable rate brackets. Additionally, Trump wants to abolish the estate tax and subject accrued, outstanding capital gains at death to capital gains tax. Further, he plans to slash the corporate tax rate, presenting a good opportunity for change to a broken system. How soon will this all happen? Any tax reduction is going to face heavy opposition for the Democrats, but a good strategy is to pass things early on in a new presidency, so look for tax changes as early as the beginning of next year.
See Bill Bischoff, What Trump’s Victory Means for You and Your Taxes, Market Watch, November 10, 2016.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
