President Donald Trump has signed into law a sweeping overhaul of the tax code that will reduce the top tax rate on investment income by $2,000.
This will bring the top rate on capital gains, dividends, and interest to 35% from 39.6%.
While Trump claims the tax plan will lead to economic growth, it will also result in a tax cut for the wealthy, according to a study from the Tax Policy Center.
That study found that the biggest winners in the tax bill will be the top 1%, while the biggest losers will be middle and lower-income Americans.
Here are some key points about the tax reform plan: What it will do The top rate will remain at 35%.
It will apply to income earned over $418,400, which is the threshold for many income tax brackets.
Trump signed the bill into law on February 28, 2017, and it will go into effect in 2026.
It also eliminates deductions for state and local taxes and eliminates the estate tax.
What it won’t do The bill does not significantly change the top federal income tax rate.
Trump promised to increase it, but he has not made that a top priority.
Instead, the White House will work to close loopholes that allow wealthy individuals to defer paying taxes on income earned in the United States.
The tax bill also lowers the estate and gift taxes and lowers the rate for the mortgage interest deduction.
That would reduce the amount of income that is taxed at the top rates.
The biggest winners will be those at the very top of the income distribution, but that’s not a surprising outcome, said Steve Rosenthal, a senior fellow at the Tax Foundation.
The Tax Policy Centre said that most of the changes in the bill would not impact the wealthiest Americans.
The richest 10% of households would see their taxes go down by about $1,400 in 2027 under the plan, according a report from the Urban Institute.
In 2026, the richest 1% of families would see the largest tax cut, Rosenthal said.
Trump’s plan includes a $10,000 tax credit for people who itemize their deductions, and there will be a $5,000 credit for those who itemise deductions for their children.
Rosenthal noted that the credit would be much more generous than the $2 million that Trump announced earlier this month.
It will allow people who earn $5 million or less to itemize deductions for up to $7,000 in a year.
What this means The Tax Foundation’s Rosenthal said that the credits would allow people with low incomes to keep their tax bill down.
But, he said, that could lead to a tax increase if a household itemizes deductions.
The Urban Institute’s Rosenthal also said that Trump’s proposal could leave the top 0.1% of Americans with a $24,000 exemption, which would mean that they would have to pay more in taxes than they would under current law. The top 0