TAX BILL MIXED REVIEW
January 29, 2018 - Douglas Myser
Tax bill mixed review. The recently passed tax bill is a real mixed review when it comes to constituencies trying to figure out if they are winners or losers under the bill. Once the bill was thoroughly analyzed it became apparent that not every group was going to be happy, and some might be quite upset. Some would actually owe more in tax, and possibly need tax help as a result. Tax bill mixed review.
Four individual changes to the individual IRS rate start this year, but then expire in 2025. They are the individual tax cuts, the increase in the exemption for the alternative minimum tax, the increase for the child tax credit, and a larger estate taxes exemption. A deduction for medical expenses takes effect, going retroactive back to 2017 and again for one year in 2018. In 2019 the Obamacare repeal of the individual mandate happens.
The tax bill also impacts business taxes. The tax rate drops to 21 percent, from the existing rate of 35 percent. Also, businesses can fully deduct business expenses used to purchase equipment immediately. Companies that want to repatriate money form overseas will have an 8 year window to do so, with a 9 percent rate applied to the money brought back into the U.S. The tax help anti abuse tax goes into effect in 2018, in an attempt to prevent companies form parking any additional money offshore, making it harder and more costly to do so.
The tax bill gives a $61 billion tax cut to the middle class by the year 2019, which represents about 24% pf the total in tax cuts in the tax bill. The tax help given to the middle class, scorned by some, but welcomed by others, is now law and we will have to wait and see how it impacts the economy in the long run. For those with tax debts, a Tax Resolution Company might be a good option. The tax bill gives nearly $61 billion to the top 1% in the first year alone. Whether that gets invested back into the economy, only time will tell. Then we will truly be able to gauge whether this tax bill gave real tax help to the American people.
If you were one of the people who actually had a tax increase, due to the Tax Cuts and Jobs Act, call us, as we know of this issue and can provide you potentially with Tax Relief. Our Tax Resolution Company is 36 years old and a leader in this industry. We can file any unfiled tax returns, then go thur the process of determining all your options for dealing with your tax debt by Tax Resolution Services, including the older IRS Fresh Start Program, but not limited to that program. Tax Resolution made stress free so you won't have the IRS Collection Division and a IRS Wage Garnishment or Bank Levy to deal with. Call for a free Tax Consultation today. 1-888-689-7861