8 News NOW is taking a look at how President Trump’s proposed tax cuts would affect Nevadans.
The president wants to cut the corporate tax rate from 35 percent to 15 percent and cut the individual tax rate for the highest earners from 39.6 percent to 35 percent.
Obviously these two cuts would help the wealthiest Americans. But according to the White House, this will benefit the middle class.
Doubling the standard deduction. For individuals it would go from $6,300 to $12,600. For married couples filing jointly, it would go from $12,700, to about $24,000. That essentially means you won’t have to pay any income tax on your first $24,000 in income.
And finally, the president wants to eliminate most personal deductions. Except the deduction for mortgage interest, charitable giving, and retirement savings.
“Increasing the personal exemption is going to help a lot of seniors because it’s going to allow them to get more income without paying taxes. So, the first $24,000 of income that they get, they’re not going to be paying taxes on, so that’s going to be double what they’re doing right now,” said Mike Keeler, Peak Financial Solutions.
Las Vegas certified financial planner Mike Keeler also says the proposal to reduce the number of tax brackets from seven to three (10 percent, 25 percent, and 35 percent) would not only save some people money, but simplify things and make it an easier tax plan.
Critics of the president’s plan say it favors the rich and would deepen the deficit. The White House argues ,it’s geared to help the middle class and stimulate the economy.
