Trump's Proposal To Increase Deductions Could Affect 27 Million Americans
President Trump is all set to roll out major changes to the tax code proposing large increases in deductions claimed on taxes. If approved, small business owners would see a savings of thousands of dollars annually in reduced tax liability. This single change could potentially affect 27 million of 45 million taxpayers that used itemized deductions in previous years. According to the Washington Post:
President Trump on Wednesday plans to call for a significant increase in the standard deduction people can claim on their tax returns, potentially putting thousands of dollars each year into the pockets of tens of millions of Americans, according to two people briefed on the plan.
The existing standard deduction Americans can claim is $6,300 for individuals and $12,600 for married couples filing jointly. The precise level of Trump’s new proposal could not be ascertained, but it was significantly higher, the two people said, who spoke on the condition of anonymity because the plan has not yet been made public.