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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.

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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 2 years ago
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