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Chapter 7: Trumponomics

When you file your income tax, the IRS obligates
you to figure out whether you have to pay AMT or file
under the traditional tax system. Congress changes the
rules yearly and indexes the tables according to the
inflation rate. Beginning in 2018 and ending in 2025,
the AMT exemption amount is increased to $109,400
for married taxpayers filing a joint return and $70,300
for all other taxpayers. The phase-out thresholds are
increased to $1 million for married taxpayers filing a
joint return, and $500,000 for all other taxpayers.

Corporate Taxes

The new tax law reduces the corporate tax rate to
a flat 21% from the highest 35% rate in the prior
system. Lowering the corporate tax rate will increase
the profits of many companies, which could provide
additional capital for business expansion, increase
dividends to shareholders and make the U.S. a more
attractive place for foreign businesses to open
operations.
The tax plan will eliminate 75% of existing rules
and end the practice of double taxation for American
corporations earning money abroad. President Trump
has stated, “This lower rate makes corporate inversions
unnecessary by making America’s tax rate one of the
best in the world.”
With Trump’s tax plan, companies would be
allowed to write off 100% of all capital investments in
the first year instead of expensing them gradually over
three to 20 years or more, as required under the
previous law. When companies depreciate a one-
million-dollar investment over ten years, they may be

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