The White House has recently proposed new tax laws that could have a major impact on your take-home pay. The proposed changes would affect the federal income tax, the payroll tax, and the estate tax.
The proposed changes to the federal income tax would increase the standard deduction, which would reduce the amount of taxes people pay. The new law would also reduce the number of tax brackets from seven to three, with a top individual rate of 35%.
The proposed changes to the payroll tax would mean that employees would pay less in Social Security and Medicare taxes. The payroll tax rate would be cut from 6.2% to 4.2%.
The proposed changes to the estate tax would double the exemption amount from $5.45 million to $10.9 million, meaning that fewer people would be subject to the estate tax.
These proposed changes are the biggest overhaul of the US tax system in decades, and they could have a significant impact on your wallet. It’s important to stay informed and be aware of how these changes could affect you.
