Tax Law Changes? President Trump signed the "Tax Cuts and Jobs Act" into law on Dec....

Tax Law Changes?

President Trump signed the "Tax Cuts and Jobs Act" into law on Dec. 22, 2017. Many of the changes will affect individual taxpayers in 2018. Review the new tax law and the changes that pertain to individual taxpayers.

Pick one provision that was passed that you feel strongest about supporting. Explain why it's supported.

Solutions

Expert Solution

The new tax law will reduce the marginal tax rate on individual income labor and investment. Also, there is and estimation of increase in the GDP.

Following are the changes pertains to the individual:

1. Lowermost individual income tax rate that includes the top marginal rate is reduced from 39.6 to 37 per cent.

2. The new tax law increases the standard deduction for the individuals to $12,000.

3. By lowering the penalty amount to $0, it effectively repeals the individual mandate penalty.

The new tax code is projected to improve the United states's current ranking from 30th to 25th among the 35 Organisation for Economic Co-operation and Development (OECD) .

Full expensing provision is allowed to the short life investment under the new tax law. It allows businesses to deduct the full cost of most short-lived asset such as machinery and equipment though not longer lived asset like structures.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Tax savings are being passed down President Trump signed the Tax Cuts and Jobs Acts into...

Tax savings are being passed down President Trump signed the Tax Cuts and Jobs Acts into law on Dec. 22, 2017, reducing personal income taxes for most families for the next 10 years. Corporations, however, received much bigger and more permanent tax cuts with the new law reducing the corporate tax rate from 35% to 21% and reducing the tax on repatriated cash to 15.5%. The Congressional Budget Office estimates businesses will save about $320 billion in taxes over the...

What are the positives and negatives of the "Tax Cuts and Jobs Act"?

The Tax Cuts and Jobs Act of 2017 is a major overhaul of the tax codes...

The Tax Cuts and Jobs Act of 2017 is a major overhaul of the tax codes in nearly three decades: it has generated a lot of debates on its potential impacts on economic growth, budget and sustainability, and equality and fairness etc. For our purpose, focus your discussion on the corporate side: What would be possible impacts of some of the specific provisions on the corporate FCF, WACC, and Valuation? What would be the possible impacts of some of the...

The Tax Cut and Jobs Act, 2017 The changes made by the Tax Cut and Jobs...

The Tax Cut and Jobs Act, 2017 The changes made by the Tax Cut and Jobs Act, 2017 to the tax provisions have changed tax rate for 2018 and people are getting a first hand experience of what it means to them. Go over the Act and address the questions below: 1. What are the major changes made to the tax provisions by the Act? 2. What impact is it likely to have on our GDP and government’s budget?

The Tax Cut and Jobs Act, 2017 The changes made by the Tax Cut and Jobs...

The Tax Cut and Jobs Act, 2017 The changes made by the Tax Cut and Jobs Act, 2017 to the tax provisions have changed tax rate for 2018 and people are getting a first hand experience of what it means to them. Go over the Act and address the questions below in full paragraphs: Does everyone benefit from the changes in tax provisions or does it favor one group over others? What changes do you agree and disagree with?

The Tax Cut and Jobs Act, 2017 The changes made by the Tax Cut and Jobs...

The Tax Cut and Jobs Act, 2017 The changes made by the Tax Cut and Jobs Act, 2017 to the tax provisions have changed tax rate for 2018 and people are getting a first hand experience of what it means to them. Go over the Act and address the questions below in full paragraphs: If you had the power to revise the Act, what changes would you make? How have the changes in taxes affected you personally? Many articles have...

You will need to reference the Tax Cuts and Jobs Act of 2017 (Links to an...

You will need to reference the Tax Cuts and Jobs Act of 2017 (Links to an external site.) to solve the questions in this assignment. The questions below also rely on the following assumptions: You file your taxes as a single filer. Your only taxable source of income is wage income. In 2017 you earned $100,000 of gross wage income. In 2017 you claimed one personal exemption. In 2017 you claimed itemized deductions of $10,000. Calculate the amount of federal...

You will need to reference the Tax Cuts and Jobs Act of 2017 (Links to an...

NOTE: All questions will be based on Tax Cuts & Jobs Act (TCJA) and tax returns...

NOTE: All questions will be based on Tax Cuts & Jobs Act (TCJA) and tax returns prepared after 2017 17) All of the following MACRS assets useful life categories are correct, except: A) Trucks have a 5-year useful life under MACRS. B) Computers have a 3-year useful life under MACRS. C) Desks have a 7-year useful life under MACRS. D) Residential rental real estate buildings have a 27.5-year useful life under MACRS. E) Non-residential real estate buildings have a 39-year...

1.The Tax Cuts and Jobs Act of 2017 reduced the corporate income tax rate to a...

1.The Tax Cuts and Jobs Act of 2017 reduced the corporate income tax rate to a 21% flat rate. True False 2. The Tax Cuts and Jobs Act of 2017 eliminated the child tax credit. True False 3. A taxpayer can deduct pass-through losses on his Form 1040. However, he must pass all these limitations in order to deduct the losses, except the A.basis limitation. B.the limitation on the number of children he has. C .at-risk limitation. D.passive loss limitation.

Subjects