Donald Trump’s tax plan will make it more simple to pay the government. There are four tax rates under the plan: 25%, 20%, 10% and 0%, eliminating most deductions. The death tax will be eliminated.
According to the website, “The Trump plan eliminates the income tax for over 73 million households. 42 million households that currently file complex forms to determine they don’t owe any income taxes will now file a one page form saving them time, stress, uncertainty and an average of $110 in preparation costs. Over 31 million households get the same simplification and keep on average nearly $1,000 of their hard-earned money.”
Small business should see some relief. Under the new proposed law, all businesses will be paying the same rate. “No business of any size, from a Fortune 500 to a mom and pop shop to a freelancer living job to job, will pay more than 15% of their business income in taxes. This lower rate makes corporate inversions unnecessary by making America’s tax rate one of the best in the world.” A corporate inversion occurs when a U.S. company incorporates in another country to avoid paying high taxes here on income not earned in the U.S.