Sunday , April 21 2024

Tax Reform: What Changes Are Coming?

Tax reform is a hot topic in the United States right now, as the Trump administration and Congress are working to pass a major overhaul of the tax code. The proposed changes are far-reaching and could have a significant impact on individuals and businesses alike. In this article, we’ll take a look at some of the changes that are being proposed and how they could affect you.

One of the most significant changes being proposed is a reduction in the corporate tax rate. The current rate is 35%, but the proposed rate is 20%. This could have a major impact on businesses, as it would reduce their tax burden and potentially increase their profits. It could also lead to more jobs and higher wages for workers.

Another major change being proposed is the elimination of the estate tax. Currently, estates worth more than $5.49 million are subject to a 40% tax. This tax is often seen as unfair, as it can be a major burden on families who are already dealing with the death of a loved one. Eliminating this tax could provide some relief to those families.

The proposed tax reform also includes changes to individual tax rates. The current seven tax brackets would be reduced to three, with the top rate dropping from 39.6% to 35%. This could provide a major tax break for many individuals, especially those in the highest tax bracket.

Finally, the proposed tax reform includes changes to deductions and credits. The standard deduction would be nearly doubled, which could provide a major tax break for many individuals. Additionally, the child tax credit would be increased from $1,000 to $2,000, which could provide a major boost to families with children.

Overall, the proposed tax reform could have a major impact on individuals and businesses alike. It could provide a major tax break for many individuals, while also reducing the tax burden on businesses. It remains to be seen if the proposed changes will be passed, but it’s clear that tax reform is a major issue in the United States right now.

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