Proposed Tax Reform-What May be Different
The Tax Cuts and Jobs Act was released last week which outlined the biggest transformation of the U.S tax code in more than 30 years. House Republicans shed some light into the details of the plan, even though The House Ways and Means Committee will most likely modify some components. The hope is to turn the bill into law before Christmas. This may be a stretch! If it is delayed until 2018, the tax changes will then affect your 2019 return. Much more work will be done due to opposition and lobbyists protecting their special interests. We believe it is important to discuss some of the components that have been outlined already. Although, the details of each topic are not set in stone, it will provide some insight into the direction Congress is headed. Individual Tax Brackets The simplest proposed component of the tax code is a compression of individual tax rates. Currently there are 7 tax brackets (10%,15%,25%,28%,33%,35%,39.6%) and each have specific thresholds you mu...