There still is a lot of book ahead in any tax reform coming out of the Trump administration.
But taking a page from candidate Trump's tax plan, it looks that the number of tax brackets will be cut to three from seven, and the top tax bracket, for those with net income of $225,000 for a married couple or $112,500 for an individual, will be reduced to 33 percent from 39.6 percent. Other major changes include reductions of corporate tax rates, capital gains taxes and taxes on “pass-through businesses,” that is, sole proprietorships (S corps), partnerships and LLCs, which make up the bulk of taxpaying businesses.
Related: What does a Trump presidency mean for the P&C industry?
|'Proposals very pro-business'
“The proposals are very pro-business,” says Mike Coglianese, founder and principal of Michael Coglianese CPA in Chicago. “[Trump] wants to cut the business tax rate from 35 percent to 15 percent, which is amazing. Even if it only goes down by half of that, it's good for the market.”
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Ginger Szala
Ginger Szala is executive managing editor of Investment Advisor magazine. She covered the financial business and alternatives industry for 30 years while editor of Futures Magazine Group. MSJ Northwestern, BA University of Wisconsin-Madison. She is based in Chicago. Go Blackhawks!
