Trump’s Tax Plan Benefits For The Rich
Last week, the Senate Finance Committee released its Tax and Jobs Act. The new plan is based off of the Trump administration’s proposal first presented back in September. Some highlights of the documentation include cutting corporate tax rates drastically and income tax rate decreases. In short, the new plan will benefit the rich more than any other class of citizens. Here are just a few of the tax plan benefits for the wealthy.
Reducing Taxes Through Donations
Charitable donations have long been a popular way for the upper-class to lower their taxes. With Trump’s plan, donations could result in even more savings for the rich. In fact, the administration has put an increased emphasis on giving back – personalized item deductions will be nearly eliminated, leaving the wealthy with little options but to make to donations in an effort to catch tax breaks.
High Income = Largest Tax Cuts
This is the most note-worthy piece of information for wealthy Americans. Not only will taxes lower on them this year; it will continue to lower for the next decade. High-income households and not just individuals will benefit as well. An average tax cut for citizens hovering just below a million-dollar salary would be about $40,000 per year.
Stock Market Could Go Up
What could be better news than the stock market going up? A lot of Trump’s thinking behind this plan is designed to bring jobs back to the U.S. With these pending tax cuts, will big businesses bring overseas positions back to the states? If so, it is very logical to think this would positively impact the stock market.
Private School Tuition Will Be Paid For
Thanks to a 529 plan, private school tuition just got much more affordable. Thousands of dollars will be available for withdrawal in order to pay for schooling up to the college years. This plan specifically targets parents that already plan to send their kids to private institutions.