Republicans Announce Tax Reform Framework

After months of speculation, President Trump and the Republicans have finally announced their framework for tax reform.  While specific details are not known, the key elements of the framework that could impact the senior living area include:

• Reducing the corporate tax rate to 20% (current rate is 35%).
• Providing for a 25% tax rate (current maximum rate for individuals is 39.6%) for income from small businesses owned as sole proprietorships, partnerships and S corporations.
• Providing for individual tax bracket rates of 12%, 25%, and 35% (a change from the current 7 rates that go from 10% to 39.6%).
• Limiting corporations' ability to deduct interest.
• Allowing corporations to expense the cost of new investments in depreciable assets other than structures for at least 5 years.