Editor's Note: This story was updated on Sept. 29, 2017:
The Trump administration released a new tax reform plan on Sept. 27, 2017, although some of the details are still vague.
Originally, President Trump wanted to break down the tax brackets into three percentiles for individuals: 12%, 25%, and 33%. In this updated plan, he wants to keep 12% and 25% the same but change 33% to 35%.
Also, the new tax code could double the standard deduction to $24,000 for married taxpayers filing jointly and $12,000 for single filers.
Originally under President Trump's proposal, those making $37,500 and below would pay a 12% tax. This new proposal would essentially create a "zero tax bracket" by eliminating taxes on the first $24,000 of income earned by a married couple and $12,000 earned by a single individual.
"Numerous other exemptions, deductions, and credits for individuals riddle the tax code. The framework envisions the repeal of many of these provisions to make the system simpler and fairer for all families and individuals, and allow for lower tax rates," the tax reform proposal said.
Original story follows...
President Donald Trump plans to release a "phenomenal" tax cut plan in the next few weeks.
While he plans to cut business taxes, the Trump tax plan for individuals may have the biggest impact on your wallet.
Here's a look:
Trump Tax Plan - Single | Tax % | Trump Tax Plan - Married Filing Jointly | Tax % |
$0 - $37,500 | 12% | $0 - $75,000 | 12% |
$37,500 - $112,500 | 25% | $75,000 - $225,000 | 25% |
$112,500+ | 33% | $225,000+ | 33% |
Current Tax Plan - Single | Tax % | Current Tax Plan - Married Filing Jointly | Tax % |
$0 - $9,275 | 10% | $0 - $18,550 | 10% |
$9,275 - $37,650 | 15% | $18,550 - $75,300 | 15% |
$37,650 - $91,150 | 25% | $75,300 - $151,900 | 25% |
$91,150 - $190,150 | 28% | $151,900 - $231,450 | 28% |
$190,150 - $413,350 | 33% | $231,450 - $413,350 | 33% |
$413,350- $415,500 | 35% | $413,350 - $466,950 | 35% |
$415,050+ | 40% | $466,950+ | 40% |
An $80 Billion Cover-Up? Under the watchful eye of Congress, the government will soon be implementing a controversial plan that threatens the retirement of millions of Americans. And they're using an obscure loophole buried in Title 29 of the U.S. Labor Code to do it. If you have a 401(k), IRA, or any type of retirement account, this could cause you to miss out on $68,870 or more. Learn more...