Question

The changes made by the Tax Cut and Jobs Act, 2017 to the tax provisions have changed tax rate for 2018 and people are getting a first hand experience of what it means to them. Address the questions below:? How have the changes in taxes affected you personally or the average consumer? Please make this no less then 3 paragraphs and in depth. Thank You and I will rate it well! please do not copy a question already posted here because this specific question has not yet been addressed.

Answer 1

Answer:

The major changes made to the tax provisions by the Act:

The Tax Cut and Jobs Act of 2017 brought about certain significant changes to the over taxation process.

some of them are as below:

A number of deductions like ‘various deductions’ costs of compliance costs have been scraped for the nearly 30 million tax filers with the standard deduction replacing them, thus making the overall tax filing process comparatively simpler.

The itemized deductions and the alternate minimum tax were altered thereby altering the individual income tax, expanding the standard deduction.

Tax credit to child have been increased and the tax rates to marginal economy have also been strengthened.

Some of the itemized deductions have been brought under certain restrictions, such the State deductions, taxes for the local government and that of the interest of mortgage.

The Tax authorities have gauged that the new standard and revolutionized steps would reduce the time required to fill in the tax filing by about 20%.

The affect of the changes in taxes personally or the average consumer is:

The changes in the taxes benefits every average customer or me personally,

ie through the tax cut we can save money which we are being paid as tax every month and this savings can be used for the family well being, children education, and savings for future etc.

Every consumer in the economy will be benefited from the tax cuts both individuals and firms both will get the tax cut benefit.

Even though both individuals and firms will benefit from tax cuts after reading the act I felt that mostly Large corporations will have more benefit than anyone.

Due to this tax cuts large corporations will save more money as disposable income which is beneficial for them.

The main reason of this act is that firms will have more money in hand so that they will invest in the economy this extra income from tax cuts and create more jobs.