President Donald J. Trump will be making his first address to the Joint Session of Congress tonight, and the biggest question we've been asked is "will Trump cut my taxes?"
The Dow Jones Industrial Average has climbed more than 14% since Election Day, and that's largely due to the expectations of tax cuts and less regulation. When the paring back of Dodd-Frank legislation was announced on Feb. 3, for example, the Dow Jones Industrial Average (DJIA) increased nearly 1% on the day.
Now, the president has given some details about his tax cut proposals. Corporations are likely encouraged by the news that the administration wants to pare corporation tax levels to 15% from the current 35%. The plans also include incentives for keeping businesses in the United States.
But that's the corporate picture. What about individual investors?
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Here's what we know so far about Trump's plan to cut taxes along with the likely timing of the implementation.
Will Trump Cut My Taxes? Proposed Individual Rate Changes
Here's a look at Trump's proposed plans for individual tax cuts compared to the current rates:
| 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% |
When Will the Trump Tax Cuts Take Place?
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The implementation of the tax cuts will be subject to congressional approval. And that's where the issue could run into a short-term delay, for two reasons.
Reason One: Healthcare. Congress has made no secret of the fact that it wants to get rid of the Affordable Care Act (ACA), or Obamacare. In their view, it has hiked taxes and added to the national debt. There's a Republican majority in Congress, and the ACA is one of their top priorities.
It looks as if most of 2017 could be taken up with healthcare discussions in Congress. Republicans want a plan for healthcare in place before the ACA is removed. And they want the plan and the repeal or removal in place before any discussions of tax cuts.
Discussing and drafting new healthcare policy is going to take a considerable amount of time. It may take until the fall at the earliest.
Reason Two: Spring Budget. Congress wants to get its spring budget passed before turning to new tax legislation. If discussions don't begin until the fall, any plans for Trump to cut taxes may not be implemented until 2018.
Stay tuned to Money Morning for more updates on Trump's tax cut plans.
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