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  3. Clayton & McKervey summarizes President Trump’s tax reform plan

Clayton & McKervey summarizes President Trump’s tax reform plan

Posted by Clayton & McKervey on September 27, 2017

Clayton & McKervey Clayton & McKervey

Clayton & McKervey, an international certified public accounting and business advisory firm located in metro Detroit, offered a summary of President Trump’s tax reform plan, announced today and titled A Unified Framework for Fixing Our Broken Tax Code. The summary was prepared by Suzanne Tuson, CPA, MST, a shareholder in the firm’s international tax services department.

In reviewing the proposed reforms for individuals and families, Tuson summarized the following key reforms:

  • Create a larger “zero” tax bracket by increasing standard deductions to $24,000 married filing jointly and $12,000 for single taxpayers
  • Consolidate current seven tax brackets to three brackets of 12%, 25% and 35%, but leave congress the option of creating an additional higher bracket for higher income taxpayers
  • Repeal personal exemptions for dependents and increases the Child Tax Credit
  • Increase income levels at which the Child Tax Credit begins phase out
  • Make the first $1,000 of the Child Tax Credit refundable
  • Provide a $500 non-refundable credit for non-child dependents
  • Repeal Alternative Minimum Tax (AMT)
  • Eliminate most itemized deductions, but retain tax incentives for home mortgage interest and charitable contributions
  • Retain tax benefits that encourage work, higher education and retirement security
  • Repeal death tax and generation skipping transfer tax

In reviewing proposed reforms for business, Tuson summarized the following key reforms:

  • 25% Maximum tax rate applied to business income of small and family owned businesses conducted as sole proprietorships, partnerships and S corporations
  • 20% Corporate tax rate
  • Eliminate Corporate Alternative Minimum Tax
  • Immediate expensing of the cost of new investments in depreciable assets other than structures made after September 27, 2017 for at least five years
  • Limit deduction for net interest expense incurred by C corporations
  • Eliminate Section 199 Domestic Production Deduction
  • Retain Research and Development and Low-Income Housing Credits
  • Modernize rules related to special tax regimes for specific industries
  • 100% exemption for dividends from foreign subsidiaries (in which the U.S. parent owns at least 10%)
  • Treat accumulated foreign earnings as repatriated under the transition to the new system
  • Tax at a reduced rate and global basis the foreign profits of US multinational corporations

“Today’s news perhaps raises more questions than provides answers, but we expect further details and implications of the reforms will come to light over the next several days and weeks,” Tuson said.

Our team is always ready to help.

Please contact us for more information.

Clayton & McKervey

Clayton & McKervey

Contact Clayton & McKervey

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Clayton & McKervey summarizes President Trump’s tax reform plan

Posted by Clayton & McKervey on September 27, 2017

Clayton & McKervey

Clayton & McKervey, an international certified public accounting and business advisory firm located in metro Detroit, offered a summary of President Trump’s tax reform plan, announced today and titled A Unified Framework for Fixing Our Broken Tax Code. The summary was prepared by Suzanne Tuson, CPA, MST, a shareholder in the firm’s international tax services department.

In reviewing the proposed reforms for individuals and families, Tuson summarized the following key reforms:

  • Create a larger “zero” tax bracket by increasing standard deductions to $24,000 married filing jointly and $12,000 for single taxpayers
  • Consolidate current seven tax brackets to three brackets of 12%, 25% and 35%, but leave congress the option of creating an additional higher bracket for higher income taxpayers
  • Repeal personal exemptions for dependents and increases the Child Tax Credit
  • Increase income levels at which the Child Tax Credit begins phase out
  • Make the first $1,000 of the Child Tax Credit refundable
  • Provide a $500 non-refundable credit for non-child dependents
  • Repeal Alternative Minimum Tax (AMT)
  • Eliminate most itemized deductions, but retain tax incentives for home mortgage interest and charitable contributions
  • Retain tax benefits that encourage work, higher education and retirement security
  • Repeal death tax and generation skipping transfer tax

In reviewing proposed reforms for business, Tuson summarized the following key reforms:

  • 25% Maximum tax rate applied to business income of small and family owned businesses conducted as sole proprietorships, partnerships and S corporations
  • 20% Corporate tax rate
  • Eliminate Corporate Alternative Minimum Tax
  • Immediate expensing of the cost of new investments in depreciable assets other than structures made after September 27, 2017 for at least five years
  • Limit deduction for net interest expense incurred by C corporations
  • Eliminate Section 199 Domestic Production Deduction
  • Retain Research and Development and Low-Income Housing Credits
  • Modernize rules related to special tax regimes for specific industries
  • 100% exemption for dividends from foreign subsidiaries (in which the U.S. parent owns at least 10%)
  • Treat accumulated foreign earnings as repatriated under the transition to the new system
  • Tax at a reduced rate and global basis the foreign profits of US multinational corporations

“Today’s news perhaps raises more questions than provides answers, but we expect further details and implications of the reforms will come to light over the next several days and weeks,” Tuson said.

Our team is always ready to help.

Please contact us for more information.

Clayton & McKervey

Contact Clayton & McKervey

related news

Doing Business in Mexico: What to Expect this Year

Without a doubt, this year will be interesting for Mexico. To start, it’s an election year and we all know what that means…a lot of uncertainty. As the global pandemic…

Read full story

What Expenses Qualify for R&D Tax Credits?

The R&D tax credit is one of the most overlooked opportunities to boost your bottom line. Many business owners fail to claim it under the mistaken belief that they’re not…

Read full story

Clayton & McKervey Launches The Sound of Automation Podcast

Media Contact: Denise Asker, dasker@claytonmckervey.com; 248.936.9488 Southfield, Mich.—February 17, 2021—Clayton & McKervey, a certified public accounting and business advisory firm helping growth-driven companies compete in the global marketplace, is excited…

Read full story

Misconceptions About the Research & Experimentation Tax Credit

As companies put more emphasis on Industry 4.0 and business processes become more automated and accessible, the opportunities for Research & Experimentation tax credits increase. The Research and Experimentation (R&E)…

Read full story

Your Guide to R&D Tax Credits

If you haven’t looked into the R&D tax credit before, there’s a good chance that you’re missing a big opportunity to boost your cash position. Even if they’re aware of…

Read full story

Categories

Jump directly to the topics that matter to you most.

  • A&E Professional Services
  • About Us
  • Advisory & Assurance
  • Business Owners
  • C&M Press Releases
  • Careers
  • China Consulting
  • Clayton & McKervey
  • Client Accounting Services
  • Consulting
  • COVID-19
  • Data Analytics
  • Estate Planning
  • Expanding Outside the U.S.
  • Expanding to the U.S.
  • From the President
  • Industrial Automation
  • International
  • Manufacturing & Distribution
  • Mexico Consulting
  • Podcasts
  • Private Client Services
  • Tax & Tax Credits
  • Transaction Services
  • Videos

Authors

Read news direct from our managers and stakeholders.

  • Ben Smith
  • Beth Butchart
  • Bryan Powrozek
  • Carlos Calderon
  • Casey Haggerty
  • Clayton & McKervey
  • Dave Van Damme
  • Denise Asker
  • Eric Lin
  • Jim Biehl
  • Julie Killian
  • Kevin Johns
  • Margaret Amsden
  • Miroslav Georgiev
  • Nina Wang
  • Rob Dutkiewicz
  • Ruben Ramirez
  • Sarah Russell
  • Sue Tuson
  • Tarah Ablett
  • Teresa Gordon
  • Tim Finerty
  • Tim Hilligoss
  • Wendy Reedy

Additional Resources

Additional news from Clayton & McKervey can be found below.

  • Subscribe to our email newsletter
  • View upcoming events
  • Contact us to let us know how we can help you

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