Question

Your opinion on the impact of the revision of the 2017 U.S. tax code?

Current status of Global taxation considering the facts of the case study and other accounting literature?

Answer 1

The new tax code of 2017 doubled the standard deduction amount. For single taxpayers: the standard deduction has increased from $6350 to $12000 for 2018 taxes. For married couples: there is an increase in standard deduction from $12700 to $24000. Approximately 30%of taxpayers itemize. This is expected to decrease under new law.so only few taxpayers will pay it. Both individuals and families enjoy tax relief. Impact: The new tax code increases child tax credit. It also provide non refundable credit of $500 for dependents other than children. The tax code removes personal and dependent exemptions. It also limits the home mortgage loans. Also it limits the amount of state,local,property,income and sales tax. It eliminates tax penalty for not taking health insurance after dec 31,2018. Current status of global taxation : almost every country which earns income through MNC ‘s ( multi national company) within their own boarders are taxed. The United States also taxes their foreign income which it earned through US based MNC s where it is considered as US parent by taking credit of taxes they pay. Mostly other countries exempt foreign sources of income earned through its MNC’s .