The New Presidency is Bound to Result in Tax Changes
It seems democrats and republicans alike were holding their breath on election night. Now, as with every election there are those who are happy and those who are not. It can’t be helped. And now we move forward and see how things unfold.
If you’ve been following the news, then you will probably agree that one area that seems sure to change under the Trump Presidency is taxes.
You may have missed the detail of Trumps’ pre-election tax plan amid all the chaos leading up to the election. So here’s a review: Trump’s plan called for lowering taxes across the board and reforming the Tax Code overall. He also talked about consolidating tax brackets into three rates: 12%, 25% or 33%. In addition he said he would lower the business tax rate to 15%.
Moreover, Trump has said he would repeal the Affordable Care act, which would eliminate the additional Medicare tax, the net investment income surtax, the medical device excise tax and the Cadillac tax on certain high-cost health plans. All we can do for the moment is wait and see.
Anyone who has already retired and is living on a fixed income, as well as those nearing retirement age certainly will want to keep tabs on the changes.
Often, significant tax changes can affect day-to- day living expenses.
Trump has also proposed a repeal of the estate tax and the disallowance of contributions of appreciated assets to a private charity that was established by the decedent or the decedent’s relatives. You may want to schedule an appointment with your attorney or financial advisor to review your circumstances before new laws are passed to see if your retirement plan will suffer in light of the proposed changes.