Tax Cut and Job Act of 2017

Question

Tax laws continously change and with that, individuals should be aware of what has changed to best prepare for your annual tax returns.

With that, I want you to investigate the TCJA of 2017 and highlight the changes and the impact.

My concern here is to find reputable sources to report this information. I want to stay away from the ‘democratic or republican perspectives - and there are a lot of them out there.

I want a non-biased evaluation of the code and what you can see are the pros or cons based upon your research. 

Answer 1

There are too many changes to list but the main one is the reduction in tax rates for corporations and individuals. Other significant changes for individuals are the increased standard deduction, the $10k cap on SALT deductions, the elimination of exemptions, and the doubling of the child tax credit for some. Also, some business owners will be able to deduct a percentage of "qualified business income." The most significant change for corporations is the reduction of the tax rate to 21%. Other major changes for corporations include a limitation on deductible interest expense for some, and repeal of income deferral for noncontrolled foreign corporations. Publicly held corporations can no longer deduct officers' pay over $1 million including stock grants for performance. And the domestic manufacturing deduction was repealed. There are other changes and many more details.