• Tax Reform Update
  • August 9, 2017 | Author: John Pedro Dombrowski
  • Law Firm: Shumaker, Loop & Kendrick, LLP - Toledo Office
  • Tax reform stands as a top priority for the White House and the Republicans in Congress. Although differences exist, some fundamental similarities appear to be on track if reform moves forward. If the parties can agree, taxpayers can expect major changes in terms of individual, business, and international taxation. In its one-page release on tax reform, the White House listed simplification of the tax code and tax relief as its main goals. To that end, the White House has proposed to reduce the seven current tax brackets down to three with rates of 10%, 25% and 35%. The GOP plan termed “A Better Way” also aims to reduce the number of brackets to three, but with rates of 12%, 25% and 33%. Both plans also envision increasing the standard deduction to effectively create a 0% tax rate for individuals with lower income.