If Trump can half personal income tax rate, US government may get a large surplus
By scheng1
@scheng1 (24649)
Singapore
March 26, 2017 7:10am CST
If Trump can get the Congress to pass a bill to half personal income tax rate, US government may get a huge budget surplus.
Many working persons are investing through their deferred tax investment accounts because of the high personal tax rate.
Once the income tax is half, it makes sense for them to pay tax and transferred their investments from deferred tax accounts to taxable account.
Many advisers will tell them to transfer part of it out instead of keeping all in deferred tax accounts, because nobody knows how high the income tax will be in the future.
After tax investment accounts have the advantage of long term capital gain exemption from tax.
That means when a person transferred from deferred tax to taxed account, he is taxed at that point, and he will not incur tax again when the investment grows over the years and he sells to lock in capital gain.
2 responses
@KrauseHome (36445)
• United States
27 Mar 17
Not sure it would pass but would be interesting if it could help.
1 person likes this
@KrauseHome (36445)
• United States
27 Mar 17
@scheng1 Will be interesting to see what happens
1 person likes this
@epiffanie (11337)
• Australia
28 Mar 17
Let's hope he does right for his people ..
1 person likes this


