Donald Trump's Tax Plan

Last week, we looked at Hillary Clinton’s tax plan. This week, we look at Donald Trump’s tax plan.

First, estate taxes. Donald Trump would completely up-end the current transfer tax system:
•    He would eliminate the estate tax entirely.
•    He would eliminate the gift tax entirely.
•    Presumably, he would eliminate the GST tax entirely.
•    He would disallow a step-up in basis for the assets of decedents with estates over $10 million.

Next, income taxes. Donald Trump’s tax proposals are not entirely clear and change. However, he has proposed the following:

•    Cap deductions at $100,000 for individuals and $200,000 for a married couple filing jointly.
•    Increase the standard deduction to $15,000 for individuals and $30,000 for married filing jointly.
•    Reduce the federal tax brackets from 7 to 3, with rates of 12%, 25%, and 33%.

Current estimates are that Trump’s tax plan would:

•    Reduce taxes for low income earners by an average of 1.2%.
•    Reduce taxes for highest income earners by 10.2%.