Under this plan, I would guess many deductions would be eliminated. The home mortgage deduction (taxes paid, interest) for one.
Once your mortgage note gets down low enough or paid off, this deduction becomes meaningless anyway and cutting your tax rate would probably save you more. All the hours saved instead of wasted filling out all the d@%m forms would be worth it to me.
Yep, but a lower rate in exchange for no deductions is a fair deal in my view. I have a pretty hefty mortgage and taxes here in California, and my back of the envelope calculation shows I won’t see much difference upon switching.
However, if his plan passes, I will have the option of increasing my income without hitting the AMT wall. That is where the system is really broken now. All of my current career planning and investment strategies revolve around tax avoidance instead of maximizing income. The itemized deduction/AMT system is broken, and cannot be fixed, it has to be pulled out at its roots.
Probably phased out over a substantial period of time.
Trump’s not about to destroy the RE market.