EY Says Trump Cuts May Be Tax Push for High Incomes

The video discusses a new tax framework, highlighting a reduction in the top tax bracket from 39.6% to 35%, with potential new brackets for high-income earners. It covers the impact on itemized deductions, such as mortgage interest and charitable contributions, and the loss of state and local tax deductions. Reactions from high-tax states indicate dissatisfaction, as the changes may not benefit high-income individuals. The video advises on 'no regrets' planning, suggesting actions to maximize current deductions before potential future changes.

What is the proposed change to the top tax bracket in the new tax reform framework?

• No change to the current tax brackets

• Introduction of a flat tax rate

• Decrease from 39.6% to 35%

• Increase from 35% to 39.6%

Which deductions are mentioned as potentially being protected under the new tax reform?

• Real estate taxes

• Medical expenses

• Charitable contributions and mortgage interest

• State and local income tax

How are clients in high-tax states reacting to the proposed tax changes?

• They believe it is a significant tax cut

• They are indifferent to the changes

• They are pleased with the potential savings

• They are concerned it may not be a tax cut for them

What is the term used to describe the planning strategy suggested in light of the tax reform?

• Future-proof planning

• Aggressive tax planning

• Conservative tax planning

• No regrets planning

Why is it suggested to pay liabilities this year according to the planning strategies?

• To take advantage of current deductions

• To increase future tax liabilities

• To avoid penalties

• To comply with new tax laws