Trump is another big surprise this time, the biggest tax reform plan in the United States in 30 years!
The White House recently announced the goal 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 Reduce the tax burden of American middle-class families.
(4) reduce the corporate tax, from the current world's first heavy tax to the low-key world's lowest!
The reporter first posted the information of the White House press conference on Twitter.
Personal income tax: generally speaking, you can pay less! !
Personal income tax is undoubtedly the most concerned item for Chinese in the United States.
Double: the standard deduction of personal income tax.
In the newly released tax reform policy, the personal income tax standard deduction will be greatly increased and directly doubled:
The standard single deduction was increased to $65,438+$02,600 (the previous standard deduction was $6,300).
The family standard deduction has been increased to $25,200 (previously $65,438+$02,600).
The standard tax deduction for husband and wife is across the board: $24,000 (husband and wife file tax returns jointly).
(American tax knowledge science: every taxpayer has a basic tax-free income, and taxation begins only after this amount is exceeded. There are two kinds 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 IRS, two-thirds of people in the United States use the first method. )
Simplification: the tax rate range is reduced to 3.
In the new tax reform policy, Trump proposed to simplify the progressive tax rate from seven grades to three grades:
Only 10%, 25% and 35%.
The lowest tax rate is raised from 10% to 12%.
The highest dropped from 39.6% to 35%.
The specific tax amount has not been officially announced, and a White House spokesman said that it will be announced as soon as possible.
(Online transfer to the collection quota comparison table has not been confirmed yet)
Abolish inheritance tax permanently
However, if the capital income tax before death exceeds $6,543,800,000, inheritance tax will still be paid, except for small businesses and family farms. At the same time, in order to avoid tax evasion, the deceased or their families may not donate their appreciated assets to private charities before their death.
Cancelled: Substitute minimum tax)
AMT applies to high-income taxpayers by limiting the setting of these benefits, which will affect nearly 5 million Americans.
Cancelled: 3.8% Obamacare reform tax
Who benefits the most?
There is no doubt that the middle class and the rich are the biggest beneficiaries of this tax reform! According to statistics, the median annual income of Chinese-American families in 20 16 years was $65,050, which belongs to the middle class level in the United States. So this is good news for most families in China! 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.
Rich people: The biggest beneficiaries are the rich who account for 20% of the total income of American families, and families whose annual income exceeds 480,000 US dollars. At present, the highest personal income tax rate has been reduced from 39.6% to 35%. According to the estimation of the Tax Foundation, the after-tax income of the former 1% rich will increase by 5.3%. Coupled with the abolition of inheritance tax, their children will benefit more.
Middle-class families: the middle class has the largest decline. According to the data of the Tax Policy Center, families with an annual income of 40,000-50,000 will save $560 in taxes. Families with an annual income of 50,000 to 83,000 will save $65,438+$0,000 in tax expenses.
Knock on corporate income tax: down to 15%!
As early as during the 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 cut in American history!
At the same time, for American companies holding trillions of dollars overseas, a "one-time tax" will be implemented, and the specific amount has not yet been announced.
Which industries may benefit from tax cuts?
After the corporate tax rate is reduced, enterprises that pay more taxes will benefit the most. According to Barclays research statistics, consumer and retail enterprises, communications, banks, media, transportation, etc. It may benefit from tax cuts to the greatest extent, which can directly reduce corporate expenses and increase profits. And the original corporate tax was lower than 15%, but it is not cheap after this tax reform ~
The business of transferring taxes to partners will also benefit from it. The top tax rate will be lowered from 39.6% to 15%, and the Trump family's business empire belongs to it.
It has a great influence on most China companies.
This policy affects not only big companies like Google and Apple in the United States, but also all small companies. Many China people come to the United States to start their own businesses, such as Chinese restaurants, law firms, dentists, clubs and so on. Previously, because of the high corporate tax, most bosses in China 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 China startups, they can't move their companies overseas, and the high corporate tax has put great pressure on their operations. Now that the corporate tax has plummeted, they finally have a chance to breathe and 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 locate their headquarters in countries with lower taxes, such as Facebook and Apple. In the past 65,438+00 years, many American companies 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 enterprises returning to the United States is to bring more employment opportunities to Americans.
At present, a White House spokesman said that more details will be released one after another, and the new tax is expected to be implemented at the end of the year. Please continue to pay attention!