Trump has made another big surprise this time, the biggest tax reform plan in the United States in 3 years!
The White House recently announced the objectives of tax reform:
① Stimulate the American economy and increase millions of jobs in the United States
② Simplify the cumbersome tax system in the United States for many years
③ Lighten the tax burden of middle-class families in the United States
④ Reduce the corporate tax, which will be the lowest in the world from the current heavy tax in the world!
The reporter posted the information of the White House press conference on Twitter for the first time.
Personal income tax: Generally speaking, you can pay less! !
There is no doubt that personal income tax is the most concerned item for Chinese in the United States.
Double: Standard deductions)
In the newly-released tax reform policy, the standard deduction for personal income tax will be greatly increased, directly doubling:
The standard deduction for singles will be raised to $12,6 (the previous standard deduction is $6,3)
The standard deduction for families will be raised to $25. 2 (previously, it was $12,6)
The standard tax reduction and exemption for husband and wife, across the board, is $24, (husband and wife * * * with the same tax return)
(American tax knowledge science: every taxpayer has basic tax-free income, and tax collection begins only after this amount is exceeded. There are two types of tax-free income in the United States: ① standard deduction ② decreasing deduction: suitable for high-income people. Tax filing is one of the options. According to the statistics of the IRS, two-thirds of people in the United States use the first method. )
Simplify: Reduce the tax rate to three
In the new tax reform policy, Trump proposed to simplify the progressive tax rate from seven levels to three levels:
Only 1%, 25% and 35%
The lowest tax rate was raised from 1% to 12%
The highest tax rate was reduced from 39.6% to 35%
.
(comparison table of online tax change to collection quota, which has not been confirmed at present)
Abolish the inheritance tax permanently
However, if the capital income tax exceeds 1 million dollars before death, the inheritance tax will still be paid, except for small enterprises and family farms. At the same time, in order to avoid tax evasion, the deceased or his family members are not allowed to donate the appreciated assets to private charities before his death.
Cancellation: Alternative minimum tax (AMT)
AMT is applicable to taxpayers with high income by restricting the setting of these benefits, which will affect nearly 5 million Americans.
Cancelled: 3.8% Obamacare Tax
Who will benefit the most?
There is no doubt that the middle class and the rich will benefit the most from this tax reform! According to statistics, the median annual income of Chinese American families in 216 was $65,5, which belongs to the middle class level in the United States. So this is great news for most Chinese families! At the same time, this is also in line with the concept repeatedly mentioned by Trump before, so that the rich can bear reasonable taxes, which will help the rich to increase their investment and thus increase their job opportunities.
the rich: the most benefited are the rich, who account for 2% of the total household income in the United States, and families with an annual income of more than $48,. At present, the highest personal income tax band has been reduced from 39.6% to 35%. According to the Tax Foundation's estimation, the top 1% of the rich will increase their after-tax income by 5.3%. Coupled with the abolition of inheritance tax, their children will benefit more.
middle-class families: the middle class has the largest reduction. According to the data of Tax Policy Center, families with an annual income of 4,-5, will save $56 in taxes. Families with an annual income of 5 thousand to 83 thousand will save $1, in tax expenses.
slashing corporate income tax: down to 15%!
as early as during the election campaign, Trump said that he would reduce the corporate tax rate from the current 35% to 15%. It seems that Trump has not broken his word this time, and it is also the biggest corporate tax reduction in American history!
At the same time, a "One-time Tax" will be imposed on US companies that hold trillions of dollars overseas, and the specific amount of levy has not been announced at present.
which industries may benefit from tax reduction?
after the corporate tax rate is reduced, the enterprises that have paid higher taxes will benefit the most. According to Barclays research statistics, consumer and retail enterprises, communications, banks, media, transportation, etc. may benefit from tax cuts to the greatest extent, which can directly reduce corporate expenses and improve profits. Enterprises whose corporate tax was originally lower than 15% will not get any cheaper after this tax reform ~
pass-through business whose tax is transferred to partners will also benefit from it, and the highest tax rate will be lowered from 39.6% to 15%, and the Trump family's business empire belongs to it.
It has a great impact on most Chinese companies
This policy affects not only big companies like Google and Apple in the United States, but also all small companies. Many Chinese come to the United States to start their own businesses, such as Chinese restaurants, lawyers' offices, dental offices, clubs and so on. Previously, because of the high corporate tax, most Chinese bosses would choose not to pay corporate tax first, but to be borne by the person in charge of the company (boss or partner) through personal tax. Now, after the tax reform, the corporate tax is only 15%, and many companies will directly choose to file tax returns through companies because it is more cost-effective.
At the same time, for small Chinese startups, they were unable to move their companies overseas, and the high corporate tax has put great pressure on their operations. Now that the corporate tax has dropped sharply, they finally have a breathing space and can win more living space.
The return of big companies will increase more employment opportunities
An important reason for Trump's move is to bring American companies scattered overseas back to their nests. At one time, the corporate tax in the United States was as high as 35%, and many large companies preferred to be headquartered in a country with lower taxes, such as Facebook and Apple. In the past 1 years, many American companies have defected abroad. Now the corporate tax in the United States is lower than that in most countries in the world, and many smart local enterprises will choose to "go home". The most direct benefit of the return of enterprises to the United States is to bring more employment opportunities to Americans.
At present, the White House spokesman said that more details will be released one after another, and that the new tax is expected to be implemented by the end of the year. Please continue to pay attention!