The House passed and Trump supported the framework of a bill to cut taxes by 1.5 trillion dollars. Small business owners and the middle class are intended to be the biggest beneficiaries. I'm not sure why some think they'll never benefit from a tax cut, because the last tax cut signed by Bush 43 absolutely gave significant tax relief to the middle class.
Changing the 401-K laws was mentioned by one or more people in the house but it was shot down by leadership. Trump also said the bill will NOT change 401-k's. To do so would be incredibly stupid, since nobody outside of government have pensions anymore, 401-k's are how many Americans save for retirement and changing them would be political suicide. Not happening
The guidelines propose doubling the standard deduction, eliminating some current deductions and lowering the tax rates. At the end of the day, your taxable income may be higher, but your tax burden still reduced because of lower tax rates. It's impossible for anyone to determine where they'll fall, and anybody who tries to tell you something is lying because the details have not been released yet. you can't solve this problem with unknown variables.
They do want to make tax preparation simpler, so that means fewer people will itemize but that doesn't mean their taxes increase. I also expect to see significant relief from the AMT, which really impacts upper middle class families. I also expect tax breaks for families with young children.
I also believe deductions and / or credits for home ownership will probably survive in some fashion. The bill is a work in progress, and there's a lot of opposition from powerful people to elimination those deductions, like everyone involved in real estate, from building to repairing to selling to owning. Such deductions help prop up real estate values, and nobody wants to see that market decline. I think they survive.
PS: I don't believe this will be tax simplification for most, maybe just the lower income individuals. I expect tax breaks for college tuition to remain or increase, I expect they'll be some sort of tax relief for medical insurance and expenses. It's just how Congress rolls, they try to fix modern day issues through the tax code and that's not a bad thing. i don't mind a complicated tax system
, I'm just an advocate for lower taxes and fewer regulations and less spending.
Trump also believes, as I do, that tax cuts will spur economic growth, he's just not going to increase middle class taxes. There will be a significant tax cut for the middle class, but it's a work in progress and nobody knows the specifics yet.
As for the deficit, a growing economy cures those ills. We haven't had growth in a decade