Michael Eastham--How Big A Deal is the Trump Tax Package? #3719

Trump’s tax plan could be a big win for retirement savers
Whatever you might think of our current president, you can’t say he doesn’t think big.

The Trump-GOP tax plan just announced has the potential to affect retirement savers in fundamental, long-term ways that could be positive for many Americans. The plan is a long way from reality and is likely to see some changes before becoming law.

For now, here’s the thumbnail version:

• Corporate taxes fall to 20% from the current 35% (and some business deductions end)

• A possible one-time lower rate on repatriated corporate income held abroad, perhaps at 10%

• A 25% rate on “pass-through businesses,” whose owners now pay higher, personal income rates

• Three tax brackets — 12%, 25% and 35% — rather than the current seven