The Republican Tax Proposal: How It Would Affect You


Millions of Americans agree that tax reform is necessary. A new proposal from Republican Rep. Dave Camp provides an interesting starting point for a debate on U.S. tax reform.

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, looks at the Camp proposal, noting that the general idea is to mirror 1986 reforms by simplifying taxes, lowering rates but eliminating some deductions. Dan points out that under the proposal, there would just be three tax brackets, but some popular deductions would be limited or eliminated, and capital-gains income would be partially tax-exempt and partially taxable. Most surprisingly, changes to hedge-fund taxation and a bank tax that could hit Bank of America , JPMorgan Chase , and Wells Fargo shows that the proposal could gain bipartisan support under the right circumstances. Dan concludes that it'll be interesting to see how far Camp's proposal gets in Congress.

Is Uncle Sam about to claim 40% of your hard-earned assets?
Thanks to a 2013 law called the American Taxpayer Relief Act, or ATRA, he can, and will, if you aren't properly prepared.

Fortunately, The Motley Fool recently uncovered an arsenal of little-known loopholes to protect yourself from ATRA and help keep the taxman at bay when he inevitably comes calling. We reveal them all in a brand-new special report. Simply click the following link below for instant, 100% free access.

Protect my hard-earned wealth from Uncle Sam Protect my hard-earned wealth from Uncle Sam

Dan Caplinger owns warrants on Bank of America, JPMorgan Chase, and Wells Fargo . The Motley Fool recommends Bank of America and Wells Fargo and owns shares of Bank of America, JPMorgan Chase, and Wells Fargo. Try any of our Foolish newsletter services free for 30 days . We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Personal Finance , Stocks

More from Motley Fool


Motley Fool

Motley Fool

Market News, Investing
Follow on:

Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by