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What Congress Has in Store for Taxes in 2017

Source: host.madison.com/business/investment/markets-and-stocks/what-congress-has-in-store-for-taxes-in/article_d30d0f28-b70d-5811-b1f0-7e083d6da0a9.html - Dec 23, 2016

The year 2016 was a momentous one in politics, with the election of President-elect Donald Trump taking center stage in what resulted in complete control of Congress and the White House by the Republican Party. Many tax-policy experts predict that sweeping tax reform is now likely, but the exact shape it will take isn't entirely clear. Below, we'll go through some of the ideas on tax reform that members of Congress have proposed and compare them to the Trump tax policies from the President-elect's campaign.

One of the clearest indications of the direction that Congress might want to go with tax reform is in a document that the House Republicans Tax Reform Task Force created in June. That group's Tax Reform Task Force Blueprint includes many proposals that closely mirror what the President-elect proposed during the campaign.

For instance, the Blueprint proposes to reduce the number of tax brackets from seven to three. Rates of 12%, 25%, and 33% would apply, with larger standard deductions ranging from $12,000 to $24,000 depending on family status. The brackets that match up with those tax rates would be modified to eliminate any marriage penalty. Personal exemptions would be eliminated in favor of an expanded child tax credit.

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Category: General Business