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The details on the historic Tax Cuts and Jobs Act Featured

Written by  Thursday, 21 December 2017 20:37
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By James Lankford

 

There has been a lot of conversation surrounding the tax reform debate, and as we approach Christmas, I wanted to take a minute to tell you about the tax reform bill passed this week by Congress and give you all the original documents, so you can make up your own minds.


This is the first time in more than 30 years that Congress has taken significant action to restructure the federal tax code. Over three decades, special tax perks and deductions have been added for well-connected people, but most Americans have not received real tax relief. The bill passed will simplify the tax code, cut taxes in every bracket, and help get the economy growing again. But don't just take my word for it. CLICK ON THE LINKBELOW to use The New York Times' Tax Bill Calculator to see how much of your money will still stay in your paycheck because of the federal tax cuts.


The conversation about tax reform has been a year-long process, and during the debate there have been a number of edits, changes, and exchange of ideas, as is typical of the legislative process. Since Congress has finished merging the House and Senate bills together, here is what is in the final bill:


For individuals and families, the Tax Cuts and Jobs Act:
• Significantly increases the standard deduction for individuals from $6,500 to $13,000 and from $12,000 to $24,000 for married couples.
• Supports American families by:
• Preserving the mortgage interest deduction, providing tax relief to current, and aspiring homeowners.
• Providing relief for Americans with expensive medical costs.
• Continues and expands the deduction for charitable contributions.
• Eliminates Obamacare's individual mandate penalty tax to provide families with much-needed relief and flexibility to buy the heath insurance that fits their needs.
• Maintains the Earned Income Tax Credit to provide important tax relief for low-income Americans.
• Continues to provide support for graduate students by continuing to exempt from taxes the value of reduced tuition.
• Retains retirement savings options such as 401(k)s and Individual Retirement Accounts (IRAs).
• Provides immediate relief from the Death Tax by doubling the amount of the current exemption.
For all job creators, the Tax Cuts and Jobs Act:
• Allows businesses to immediately write off the full cost of new equipment, which allows them to buy more equipment.
• Modernizes the international tax system so America's global businesses will no longer be incentivized to relocate overseas.
• Lowers the corporate tax rate for all American companies to better compete in the global economy, which helps the US retain and attract new jobs and businesses.
• Eliminates multiple deductions that inefficiently drive business behavior through the tax code.
• Includes the Investing in Opportunity Act (IIOA), which provides an opportunity for US investors to use temporary capital gains deferral in exchange for investing in low-income communities across the country.


On average, the American economy has steadily grown 3 percent or more each year over the last 70 years. But for the last 10 years, economic growth has only averaged 2 percent, and last year, our GDP was just 1.5 percent. When our economy slows that much, we lose our economic health, wages stagnate, companies slow their hiring, and Americans lose hope that things will ever get better. Eight years ago, Congress passed a giant government-funded stimulus package costing almost a trillion dollars in an attempt to get the economy moving after a very big recession. But instead we have had eight years of historically slow economic growth. It is time for that to change.


We need to support hard-working American families. This tax reform bill focuses on them.

 

https://www.nytimes.com/interactive/2017/12/17/upshot/tax-calculator.html

 

Read more about the the Tax Bill by clicking the download button below

 

David Deaton

Digital Editor at Oklahoma Welcome

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