Question

write a summary of the final tax bill

Answer 1

Summary of the final tax bill:

The final tax bill seeks to overhaul the existing tax code. On the downside the bill was devoid of any long term aspirations with regards to tax reform. Corporate tax rate was effectively reduced from 35 percent to 21 percent. The positive implication if this is that taxes will be reduced for business owners and proprietors. Secondly it will improve the ability of corporations to write off expensive and costly purchase of new equipments.

The implication for individuals and families will also be a positive one as they stand to gain from the increase in standard deduction and increase in child tax credit. The standard deduction will nearly double, from $6,500 for individuals and $13,000 for families to $12,000 and $24,000, respectively. New child tax credit will be $2,000.

The final tax bill also provided for mortgage interest deduction. Interest on mortgages up to $750,000 will be deductible (compared to the earlier amount of $1 million).

The final tax bill has its share of scope for improvements. For starters tax code was not simplified to the desirable level. Secondly many individual tax cuts were not made permanent.