Question

1.) Identify at least one change from the new Tax Reform Act of 2017 to 2018 for each of the following areas:

-Income

-Adjustments for Adjusted Gross Income

-Adjustments from Adjusted Gross Income

-Taxable Income

-Tax Rates

2.) For each of the five changes explain the current tax law and then explain the new requirement or change. Explain the effect of each change on the affected area. Do you think this will increase or decrease most taxpayers taxes? Explain why.

3.) Identify what group of people this change will potentially benefit and those it will potentially hurt.

4.) Identify what you believe are the 5 most important items that are remaining the same from 2017 to 2018. Explain why you think not changing these requirements are good or bad, explain each of the 5 items separately.

Due to one question policy. Please answer question 4

Answer 1

1. Tax rates and Taxable income

Joint Married Filer

Previous Tax Brackets	Previous Thresholds	New Tax Brackets	New Thresholds
10%	$0 to $ 18650	10%	$0 to $19050
15%	$18651 to $ 75900	12%	$19051 to 77400
25%	$ 75901 to $153100	22%	$77401 to $165000
28%	$153101 to $233350	24%	$165001 to 315000
33%	$233351 to $416700	32%	$315001 to $400000
35%	$416701 to $470700	35%	$400001 to $600000
39.6%	More than $470700	37%	More than $600000

single filer

Previous Tax brackets	Previous Thresholds	New Tax Brackets	New Thresholds
10%	$0 to $9325	10%	$0 to$9525
15%	$9326 to $37950	12%	$9526 to $38700
25%	$37951 to $91900	25%	$38701 to 82500
28%	$91901 to $191650	24%	$82501 to 157500
33%	$191651 to $416700	32%	$157501 to $200000
35%	$416701 to $418400	35%	$200001 to $500000
39.6%	More than $418400	37%	More than $500000

2 In the 2108 the tax rates are changed by U.S Congress Comittee In the new tax Threholds are increased in the lower income tax brackets so thats poor people have to paid the lower income tax on his income if they will increase a little income and the some tax brackets also change for single filing person but its same for the joint filling person. and joint filling couples Thresholds are increased so they have to paid higher tax rate. I think taht thats the prefect changes in the all taxs because there is no much difference between the joint filing and single filing it have to made and its benifit to government because tax income is increased.

3 In the single filing lower thresholds are the get benifit because thats amounts are increased and there some tax brackets are decreased. In the tax rate who take the deduction of medical treatment that will potentially hurt beacause the deduction is reduced from 10% to 7.5%.

4 a) Deduction :- medicial deduction is decreased so is very bad that is not to decreased because there are many old people thats have the higher medical expenses and lower income than they have to paid more tax.

b) Increased standard deduction: The new tax law nearly doubles the standard deduction amount. Single taxpayers will see their standard deductions jump from $6,350 for 2017 taxes to $12,000 for 2018 taxes. It is good beacuse lower income people saved some money for there future.

c)Increased Child Tax Credit: For, families with children the Child Tax Credit is doubled from $1,000 per child to $2,000. In addition, the amount that is refundable grows from $1,100 to $1,400. The bill also adds a new, non-refundable credit of $500 for dependents other than children. Finally, it raises the income threshold at which these benefits phase out from $110,000 for a married couple to $400,000.

d)Personal and dependent exemptions: The bill eliminates the personal and dependent exemptions which are currently $4,050 for 2017 and were expected to increase to $4,150 in 2018. It is good beacuse a person have more money to spend on himself and do more expenses.

e) Self Employeed and Small businesses: The biggest includes a reduction in the top corporate rate to 21%, a new 20% deduction. Its is good beacuse a person can easly start a small business and self employeed himself.