Do You Win or Lose? 8 Things in GOP Tax Plan - Page 2
Your 401(k) is safe
Posted Nov 2, 2017 9:50 AM CDT
- Your 401(k) is safe: There's no change on this front.
- Big new mortgages won't help you: Right now, interest paid on mortgages of up to $1 million is deductible; going forward, the cap would be $500,000 on new mortgages only, something the Post sees as painful for would-be homeowners in pricey places like the Bay Area and NYC.
- Standard deduction doubles: It's what "most average Americans" use, and it would jump to $12,000 for individuals and double that for families.
- Corporations get a break: The corporate tax rate would sink from 35% to 20%.
- Kids get you more: The child tax credit would be upped to $1,600 from $1,000.
- More for the wealthy: The estate tax would be gone. And while the 39.6% tax rate would stay, it's possible the bracket would apply to families making at least $1 million, up from the current $470,000.
- Other taxes do less: The amount of local property taxes one could deduct would be capped at $10,000, and state income taxes wouldn't be deductible at all.
- Simplification overall: The number of tax brackets would decrease from seven to three or four. As the AP puts it, "most people would be able to file their returns on a postcard-sized form."
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