Tax cuts and jobs act.

MORE TAX REFORM THAN TAX CUTS

SIMPLIFY TAX CODE AND STIMULATE BUSINESS ACTIVITY

The new attempt to reform the tax code has been introduced. It appears there will be some tax savings by the middle class, and also increased incentives for a growth in business activity. This should in the long run help to increase wages, and the formation of business in the country. This will hopefully lead to more growth, and eventually more income for citizens and the government.

The biggest changes for taxpayers are as follows:

1. Double the standard deduction to $12,000 for individuals, $24,000 for married couples and $18,000 for heads of households. This will apply to all income levels.

2. Eliminate the $4,000. personal exemption. and replacing it with a $300 tax credit for parents and other dependents and a $1600. tax credit for children. Remember tax credits are a reduction in your tax much more of a reduction in tax from a deduction.These credits will be phased out at incomes over $200,000.

3. Eliminate the Alternative Minimum tax. This was a complicated tax that was aimed at those who had a lot of deductions in one year.

4. Interest deductions on mortgages is retained, but will only apply up to $500,000 homes.

5. Deductions for state and local taxes are eliminated.

6. Deductions for real estate taxes are retained with a limit of $10,000.

7. Complete elimination of the death or estate tax.

Tax brackets.   0 taxes on first $12000. for individuals

                        0 taxes on first $24,000 for couples

                        0 taxes on first $18,000 for head of household

                        12%  up to $45,000 single $90,000 married.

                        25%  from $45,000 to $200,000 single., $90,000 to $260,000 married.

                        35% from $200,000 to $500,000  single, $260,000 to $1,000,000 married

                        39.6% over $500,000 single, over $1,000,000 married.

It is claimed that 90% of filers will be able to file on a 1 page return and that 90% of filers will be better off with taking the expanded standard deduction rather than taking itemized deductions.

Business will have the biggest changes:

1. The corporate tax will be reduced from 35% to 20%. This will bring the U.S. corporate rate to be more in line with the rest of the world. This should help retain industries and also attract new companies to the United States. This will help to provide jobs,drive up wages and increase revenues for governments.

2. Make the highest tax rate on small business 25%.

3. Allowing business for the next 5 years to fully deduct the cost of new equipment in the year purchased. This should create more business and more jobs for those sellers of equipment. 

While most Americans will enjoy a lessening of their tax burden. The greatest impact should be on increasing economic activity and making America a more competitive place to do business. It also simplifies the tax code. and does flatten the brackets some.

The fairest tax is a flat tax, where all citizens pay the same rate. It is simple when you earn more you pay more and visa versa. The time is not yet here for that.

I believe there should be a 1% tax on all income. All citizens have a stake and enjoy the benefits of America. All Americans over 18 should pay a 1% tax on all income without deductions. This would probably raise a lot more money than anyone could imagine and would make everyone contribute in some way to the cost of government.