Provisions

The House’s Tax Cuts and Jobs Act would:

Personal Taxes

• Collapse the current seven tax brackets into four, paying marginal rates of 12%, 25%, 35% and 39.6%. Here is how the proposed brackets compare to those in effect under current law (2017):

Tax Cuts and Jobs Act proposed brackets vs current law
Single filers
More than Up to Proposed rate Current rate
$0 $9,325 12% ↑ 10%
$9,325 $37,950 12% ↓ 15%
$37,951 $45,000 12% ↓ 25%
$45,000 $91,900 25% – 25%
$91,900 $191,650 25% ↓ 28%
$191,650 $200,000 25% ↓ 33%
$200,000 $416,700 35% ↑ 33%
$416,700 $418,400 35% – 35%
$418,400 $500,000 35% ↓ 39.6%
$500,000 And up 39.6% – 39.6%
Married couples filing jointly
More than Up to Proposed rate Current rate
$0 $18,650 12% ↑ 10%
$18,650 $75,900 12% ↓ 15%
$75,900 $90,000 12% ↓ 25%
$90,000 $151,300 25% – 25%
$151,300 $233,350 25% ↓ 28%
$233,350 $260,000 25% ↓ 33%
$260,000 $416,700 35% ↑ 33%
$416,700 $470,700 35% – 35%
$470,700 $1,000,000 35% ↓ 39.6%
$1,000,000 And up 39.6% – 39.6%
Source: Investopedia analysis.

Read more: Trump’s Tax Reform Plan | Investopedia http://www.investopedia.com/news/trumps-tax-reform-what-can-be-done/#ixzz4xwsTjvK0