Question

Evaluate the 2017 Federal Tax Reform Act from a tax policy perspective. That is how does it (or not) achieve simplicity, transparency, neutrality & stability.

Answer 1

Meaning of Tax-: Tax is that the required payment that is formed by an individual to the govt.

And Tax Reform is the method of fixing the legal system within the thanks to collect them and manage them. This method is enforced by the government of a nation to enhance the legal system in the country.

The Tax Reform Act of 2017 involves the introduction of TCJA.TCJA stands for the Tax Cuts and Jobs Act.IRS is functioning on implementing TCJA.TCJA was passed in December 2017.

This TCJA has a major impact on individual financial gain, businessman, tax-exempt, and government entities. Under new tax law, it implements new tax limits that apply on some itemized deduction, Reducing government income rate.

How will it (or not) attain simplicity, transparency, neutrality & stability?

The principle of any sound tax program is that it ought to be straightforward, Transparent, Neutral, And Stable. But this tax reform doesn't ready to attain these items.

Simple-: tax program ought to be straightforward. It is straightforward to know and straightforward to implement by payer.but this tax reform act 2017 doesn't straightforward. It involves quality. Complexity in understanding and it requires significant time and quality to the filing method.

Transparency-Tax Policy ought to be clear that what tax money handler should pay.GRT cause Tax pyramid suggests that Multiple taxes on the same product in method on being made. This implies the burden of the tax, concealing it within the final value of products.

Neutral-: The tax program ought to be neutral.it doesn't affect individual and businessman income. But this tax program affects the individual and businessman income. A lot of neutral approaches would be to tax digital services and A less neutral approach would be to tax on other services.

Stability-: The main aim of the tax program is it ought to be stable. It doesn't involve changes. But this tax reform act 2017 involves changes. As businessmen have the opportunity to increases investment tax rate increases.