He proposes to eliminate estate and gift tax and to tax capital gains held until death with a USD5 million exemption (for an individual filer).With regard to individual taxation, Trump proposes to have three income tax thresholds (as opposed to the existing seven). For incomes up to USD37,500, he proposes an applicable income tax rate of 12 percent, for incomes up to USD112,500 a tax rate of 25 percent and a tax rate of 33 percent for earnings above USD112,500.He also proposes three tax rates for capital gains and dividends income: a 0 percent tax rate for capital gains and dividends of up to USD37,500; 15 percent for such income up to USD112,500; and a 20 percent rate for any earnings over USD112,500.Businesses would see the corporate tax rate drop from 35 percent to 15 percent, and the corporate alternative minimum tax (AMT) would be eliminated. Moreover his tax plan “will provide a deemed repatriation of corporate profits held offshore at a one-time tax rate of 10 percent”.Trump also pledges to revise and update both the individual and corporate tax codes.
Source: What to expect from President-Elect Donald Trump | STEP
