Question

What are the positives and negatives of the "Tax Cuts and Jobs Act"?

Answer 1

The positives of the Tax cuts and jobs acts will have immediate effects on the business because decrease in the corporate taxes from 35% to 21% which came in effect from 1 jan 2018, because of this tax cuts business all around US will reap the greatest benefits of this decision. Business knows cost of statrting a new business has gone down astronomicaly. One of the other changes is that the the business can take advantage of involve expenses that can be written off from the income to save more money. This write off includes full cost of new quipment, intrest paid on loans and many other things.

The Bad thing about the Tax cuts and jobs acts is that it will reduce the federal revenue by $ 1.5 trillion over a decade. While many belives that they money can be earn back by boom in the economic growth but there can also be consequences if it does not earn the money back with further escallation of america debt because of this there may be loss in the value of currecny of the country that would make getting loans much more tuff than already it is. Therefore what will happen time will tell.