An accomplished tax and finance professional, Keith Towns brings more than three decades of experience to his role as the principal of Emerge Financial Group in Oakland and Suisun City, California. As part of his professional duties, Keith Towns pays close attention to changes in state and federal tax laws.
In 2017, the Republican-led Congress and President Donald Trump passed a signature piece of legislation when it overhauled the nation’s federal tax code, making sweeping changes to corporate tax rates, personal income tax brackets, and other tax regulations. Among other changes, the new bill adjusts how taxes are calculated for married couples, eliminating the so-called marriage penalty for the majority of filers.
Prior to passage of the new tax laws, married couples who filed jointly could be penalized due to the way the brackets were structured. For example, two individuals who made $90,000 each would separately fall into the 25-percent bracket, but their combined income of $180,000 would push them into the 28-percent bracket.
The new bill, however, changes these rules for couples who make less than $400,000 combined. Beginning with the 2018 tax year, these couples will pay the same tax rate regardless of marital status.
