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Implications of Tax Cuts and Jobs Act 2017

Every citizen is expected to pay taxes which is the main source of finances for every government in the world today as the use the funds to pay for the public services and also finance the operations of the state.Tax is charged on every business and every individual. This is why tax is called an unavoidable evil this is because you can avoid paying it, if you don’t pay it directly you put in directly. There many ways that the government spends the taxpayers’ finances for instance, to construct public roads, schools and hospitals, paying salaries to the public service providers such as teachers and doctors and also paying the government officials.

Tax rules change every time because there’s always need to deal with weaknesses that arise from other laws that are set to govern the tax payment process. To counter the many weaknesses in the existing tax laws, the tax-cut and Job act 2017 was passed after going through the lawmaking process then signed by president Trump on 22 December 2017. There are employment, individual taxes and business taxes implications of the tax-cut and Job act 2017. You may require an attorney to explain to you the implications of the law because the law is complicated.

When it comes to employment, the tax-cut and Job act as implications in that it is predicted that the employment rate will be increasing each year at least by 0.6% that is from 2018 to 2017, that is an increment of employment each year. The law for employment was set to lower the marginal tax rate on labor which indicates that there are strong incentives which should lead to the increase of labor supply.

The law has implications for individual income taxes. For instance, when it comes to the individual level of income tax bracket, there are lower tax rates because of the tremendous changes brought by the tax-cut and Job act 2017. What has changed when it comes to the individual tax brackets numbers are the same and but the tax bracket ranges of been shifted with each range of income levels having a lower tax rate. The standard deductions and family credits have also been changed by this law benefiting the married couples, and also the personal exemptions and itemized deductions are being eliminated.

It is a benefit to the many businesses because the corporate tax rate has been reduced from 35% to 21%. What this means is that the business will be able to save 14% of what they used before the corporate taxes and this can give the business an opportunity to fully experience their capital investment for almost the next five years.

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