2017 and Beyond
Health Care Update March 25, 2017
Republican controlled federal government has failed to follow through on their promise to repeal Obamacare and replace it with something better. The health care mess will continue until further notice.
Todd's Tax Service LLC
Trump is unlikely to change the basic structure of our tax system or economy. Don't let all the talk distract you from implementing basic tax planning into your finances. Saving for retirement will still be good and tax advantaged. Excess debt will still be problematic. Spending more than you earn will still be a recipe for disaster (true for the U.S. Government too).
Stay tuned for updates on known changes to the system and ACA (Affordable Care Act). It is much too early to know exactly what changes are coming. Major changes may be in store for our tax system. Some folks are likely to benefit while others may be surprised at a higher tax bill at the end of the year. Changes are likely to affect your 2017 tax situation and beyond (not 2016).
No one knows at this point how this is going to play out. When Trump heard that his changes could hurt the middle class, he said he didn't want to see that happen. Let's cross our fingers.
Here is a list of some of the changes being floated by the Republicans as we approach Trump's inauguration...all of this is speculative at this point.
Increase the standard deduction (and reduce the types of itemized deductions).
Reduce the number of individual tax brackets and tax rates.
Eliminate the personal exemption.
Eliminate the AMT (Alternative Minimum Tax).
Reduce the corporate tax rate.
Repeal and replace the Affordable Care Act.
Eliminate the investment surtax.
There are potentially bigger changes being discussed that have less likelihood of being implemented into law. Nonetheless, folks need to know that radical proposals afloat include elimination of the depreciation deduction, elimination of the deduction for interest paid on commercial property, elimination of mortgage interest on big homes, etc. (See WSJ article
Dec 28, 2016). I would advise caution on any new real estate deals until the tax code is