After the most significant election in our nation’s history, the votes are in and Republican nominee, Donald Trump has been elected to become the 45th president of the United States. President-elect Trump’s tax plan looks to reduce taxes across the board, including making the business tax rate more competitive and creating new opportunities to grow our economy. Before any proposed changes can be made, they must be approved by Congress. See below to see how Trump’s plan compares to our current system.

Business Tax
	2016	Donald Trump
Corporate Tax Rates	Top rate of 35%	Top rate of 15%
Alternative Minimum Tax	Applies to corporations	Eliminated
Pass-through Entities	Income taxed as ordinary income on individual tax return	Option to elect a flat tax of 15% on pass-through income
Capital Investments	Capitalized and depreciated	Option to expense or capitalize; If expensing, interest costs are non-deductible
Unrepatriated Earnings	Not taxed until brought back into US	One time tax of 10% of total unrepatriated earnings
Childcare Deductions	Employer-provided day care credit capped at $150,000	Employer provided day care credit capped at $500,000; Additional deduction for employer contributions to employee childcare costs
Corporate Tax Deductions/Credits	Includes Research and Development credit, Domestic Production Activities Deduction, etc	Eliminate except for Research and Development
Inversion Transactions	Foreign firms owned 80% or more by US shareholders are considered US firms for tax purposes	No specific proposal

Income Tax
	2016	Donald Trump
Ordinary Income Rates	7 brackets with top rate of 39.6%	Single                                       12% $0-37,500                        25% $37,500-112,500           33% over $112,500              Married                                   12% $0-75,000                        25% $75,000-225,000           33% over $225,000        **Head of Household status is eliminated
Standard Deduction	$6,300 (single)                       $12,600 married)                     $9,300 (Head of Household)	$15,000 (single)                     $30, 000 (married)             Head of Household eliminated
Personal Exemption	$4,050	Eliminated and included in the standard deduction
Itemized Deduction	Phase out begins:                   $259,400 (single)                     $311,300 (married)	Total itemized deductions capped at:                       $100,000 (single)                 $200,000 (married)
Like-kind Exchanges	Accrued under federal law	No specific proposal
Net Investment Income Tax	3.8% on AGI above:             $200,000 (single)                 $250,000 (married)	Eliminated
Alternative Minimum Tax	AGI above:                             $200,000 (single)                     $250,000 (married)                  Trusts with income over $12,400	Eliminated
Capital Gains/Dividends Rates	Maximum rate of 20% with one year holding period	No change
Child/Dependent Care Expenses	Child/Dependent Care Credit limited for AGI over $43,000	Above the line deductions for children under age 13 and for care for elderly dependent;             Dependent Care Savings Accounts (DCSA)- deductible $2,000 contribution every year
Carried Interest	Taxed at rates on capital gains	Taxed as ordinary income
Estate Tax	Exclusion of $5.45 million adjusted for inflation, top rate of 40%	Eliminated, Except for estates over $10 million which will be subject to capital gains tax
Gift Tax	Lifetime exclusion of $5.45 million adjusted for inflation; Annual exclusion of $14,000 per donee	Eliminated
Retirement Savings Contributions	No limit on lifetime contributions	No specific proposal

UHY LLP. Certified Public Accountants. News Alert. UHY LLP News, 9 Nov. 2016. Web. 9 Nov. 2016.