Trump Tax Changes – Don’t Panic!

Oh, my goodness! Did you know “Single Parents Will be Hit Hard with Trump’s Tax Plan!” Yikes! Let’s first take a moment, breath, & re-group…the President can only “suggest” tax law while the Legislative Branch (House & Senate) create tax law. The IRS then applies the law, the Judicial Branch evaluates it for legality, and the Executive Branch enforces the law. Back to these posts/articles: Personally, I would be shocked if the elimination of the Head of Household (HOH) actually occurred in 2017. I do believe that a reduction in the tax rates is a reasonable expectation for 2017, which would be good for everyone, including single parents. So what about all these articles? Okay, what I believe is that “they” are contemplating fixing a known inequality in the tax code…Here is the reality of our current tax law: Two people live together, have a child+, and make a decent living ($50K+) – yes, super simple example; IF they are married they will truly pay a HIGHER income tax than if they are not married and one files HOH and the other files Single. Due to this tax law inequality, professionally, I’m suggesting (tax purposes ONLY) that people never get married. Instead, they should live together (caution gift tax…see tomorrow’s post), have kids, and find an outstanding lawyer for writing their wills and other documentation. Would you be on board with having this inequality fixed?

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