A. One thing for sure to happen is income tax reform, however, the details are still pending, as there are two competing proposals at this time - President Trumps vs. House Republican's, and they have some major differences.
Similarities
1. Tax Brackets
Both proposals would drastically simplify the tax brackets, from the current 7 tiers of tax rates, down to just three: 12%, 25%, and a top rate of 33% that kicks in at $225,000 (for married couples, or $112,500 for individuals).
2. Tax on Capital Gains and Qualified Dividends
Both proposals would keep preferential rates for capital gains and qualified dividends.
Differences
1. Deductions
President Trump would keep all the current itemized deduction rules, but cap itemized deductions (at $100,000 for individuals, or $200,000 for married couples) while also expanding the standard deduction even more (so only a moderate subset of people between the standard deduction and the cap would ever itemize at all).
The House GOP suggesting the elimination of virtually all individual tax deductions except the mortgage and charitable deductions (paired with an expanded standard deduction).
2. Capital Gain and Dividend Tax Rates
President Trump would retain the current 3 brackets of rates (0%, 15%, and 20%) for capital gains and qualified dividends,.
The House GOP would simply make the rates 50% of the ordinary tax bracket (which means investment income would be taxed at 6%, 12.5%, and 16.5%).