A Summary of Proposed Tax Changes + How It Might Affect You

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On November 2, House GOP unveiled the proposed tax legislation now known as the “Tax Cuts Job Act.” The proposal has generated excitement as well as concern depending on the perspective of the taxpayer or special interest affected. Taxes for many Americans would be lower and the corporate tax rate would also be lowered. To cover the associated costs of these reductions, many deductions and credits will be eliminated or changed.

You can read the proposed legislation here as well as the legislative summary here. Nick Defenthaler, CFP® and I will be spending much of our upcoming “Year-End Tax Planning” webinar discussing the proposed changes. You can sign up to attend the webinar or receive a recording of it here. If you have questions about the proposed changes based upon your personal circumstances, please contact us here at The Center to discuss.

As with any legislation, the political process can be messy. No one should be shocked if compromises occurred as the bill makes its way through the House and eventually the Senate in order to move into law. Further, while this is closer to significant tax reform than we’ve been since the ‘80s, there is no certainty until the ink is dry on a signed law. Stay tuned for updates as we know more.

In the meantime, we’ve summarized a list of potential changes, their impacts which are color-coded based on potential reduction or increase to your taxes, and a column for you to make note as to whether the proposed change might have an effect on your tax situation. The table is below and you can also download the PDF here.

This synopsis was primarily sourced and summarized from Michael Kitces’ more lengthy and technical blog article on November 3rd.

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Melissa Joy, CFP®, CDFA® is Partner and Director of Investments at Center for Financial Planning, Inc.® In 2013, Melissa was honored by Financial Advisor magazine in the Research All Star List for the third consecutive year. In addition to her contributions to Money Centered blogs, she writes investment updates at The Center and is regularly quoted in national media publications including The Chicago Tribune, Investment News, and Morningstar Advisor.


Financial Advisor magazine's inaugural Research All Star List is based on job function of the person evaluated, fund selections and evaluation process used, study of rejected fund examples, and evaluation of challenges faced in the job and actions taken to overcome those challenges. Evaluations are independently conducted by Financial Advisor Magazine.