The inauguration of President Trump is still fresh in people’s minds, but his administration is already taking swift action to implement campaign promises. In regards to the business world, many entrepreneurs — like real estate agents — are unsure how his proposed tax plan will affect their business.
- Structurally speaking, the tax system will get trimmed significantly. Trump’s first major change is to reduce the current 7 tax brackets to 3 brackets.
- The biggest change to the proposed tax system? Simplification, not necessarily fewer taxes.
- For a single real estate agent with $100,000 in net business income, you would pay $1,764 less in federal income taxes under Trump’s proposed plan, or a "true profit" increase of 2.15 percent.