It’s called the Tax Cuts and Jobs Act and there are going to be some really big winners, and some losers.
Breaking today is the House GOP tax reform plan. In last minute negotiations, several key tax proposals were eliminated from the plan.
Here are a few of the highlights to their plan as it affects the personal income taxes of Americans.
- No change on retirement savings plans like the 401k.
- No change on the inheritance income taxes due at death on 401ks and IRAs
- No change to the step up in basis at death to personal homes and other real property
- The estate tax will be eliminated over a period of years
- Repeal of the state and local tax deduction
- Limits deduction of property tax up to $10,000
- Mortgage interest will be limited to amounts on loans up to $500,000
- Elimination of the medical deduction
The effects the tax plan will have on Federal Debt are still unclear. In the days to come we will see how this plays out. The Senate must vote to approve the House GOP Tax plan. President Trump has said he wants it put on his desk by Thanksgiving.
As more information becomes available we will post it here.