Let's start with federal income taxes of individuals.
Trump wants tax cuts for the middle class. Still, he hasn't given specifics, except for flip-flopping on the idea of permanently doing away with the employee's share of payroll taxes and touting a desire to adjust income tax rates or tax brackets for middle-incomers.
He would like to see many provisions in the 2017 tax law made permanent. The estate tax easings and most individual tax changes in that legislation are temporary. After 2025, they revert automatically to the rules that were in effect for 2017. Provisions include the $10,000 cap on state and local tax deductions claimed by itemizers.
Trump backs capital gains tax relief. Here are two ideas he's talked about:
Lower the 20% top capital gains rate to 15%. For 2020, the 20% rate starts at taxable incomes of $441,451 for singles and $496,601 for joint filers.
And index capital gains for inflation. Taxpayers could increase their tax basis in capital assets by the rate of inflation between the purchase date and date of sale, thereby reducing the amount of taxable gain when the assets are sold.
