Yesterday, Republican presidential candidate Donald Trump released additional details about the most recent revisions to his economic and tax reform plan, including changes that could impact the incentive value of the charitable deduction.
While maintaining the three streamlined tax rate brackets he earlier updated to align with the House Republicans’ tax reform “blueprint,” the revised plan now increases the standard deduction for married couples filing jointly to $30,000, from $12,600, and sets the standard deduction for single filers at $15,000. Personal exemptions would be eliminated as would head-of-household filing status.
In addition, the Trump plan would cap itemized deductions at $200,000 for married-joint filers and $100,000 for single filers. These result of these changes would likely see a significant drop in the number of taxpayers claiming itemized deductions. Further, the plan would reduce non-defense discretionary spending by one percent each new fiscal year.
Independent Sector continues to review the details of this revised plan and will provide further updates as they are available.
Source: The Hill