Tax is one of the sources of finances that every government in the world relies upon to finance its operations and also pay for the public services provided to its citizens. Every business and individual must pay tax because it is a rule. This is why tax is called an unavoidable evil this is because you can avoid paying it, if you don’t pay it directly you put in directly. There are many ways the government uses the taxpayers’ finances for example, in construction of roads, public schools, public hospitals, paying the public service providers such as doctors, teachers and also being the government officials such as the president and so on.
There are changes that are always made when it comes to the tax rules this is because there are always weaknesses that come with different laws that are made to govern the process of tax payment. To counter the many weaknesses in the existing tax laws, the tax-cut and Job act 2017 was passed after going through the lawmaking process then signed by president Trump on 22 December 2017. There are employment, individual taxes and business taxes implications of the tax-cut and Job act 2017. It is important that you engage an attorney who can blame the law to you because it is complicated.
The tax-cut and Job act 2017 has implications for the employment because it is predicted that every year that the employment rate will be increasing by 0.6% each year that is from 2018 to 2027. The law for employment was set to lower the marginal tax rate on labor which indicates that there are strong incentives which should lead to the increase of labor supply.
The law has implications for individual income taxes. For instance, when it comes to the individual level of income tax bracket, there are lower tax rates because of the tremendous changes brought by the tax-cut and Job act 2017. The number of tax brackets has not changed but the ranges of been shifted but they have lower tax rates on different ranges. The tax-cut and Job act 2017 as ensured that the standard deductions and family text of been changed benefiting the married couples and also it has eliminated the personal exemptions and itemized deduction.
It is a benefit to the many businesses because the corporate tax rate has been reduced from 35% to 21%. What this means is that the business will be able to save 14% of what they used before the corporate taxes and this can give the business an opportunity to fully experience their capital investment for almost the next five years.