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. Tax is charged on every business and every individual. 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 many ways that the government spends the taxpayers’ finances for instance, to construct public roads, schools and hospitals, paying salaries to the public service providers such as teachers and doctors and also paying the government officials.
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. The law has implications for employment, individual taxes and also business taxes. It is important that you engage an attorney who can blame the law to you because it is complicated.
When it comes to employment, the tax-cut and Job act as implications in that it is predicted that the employment rate will be increasing each year at least by 0.6% that is from 2018 to 2017, that is an increment of employment each year. The reason behind the setting of the employment tax, so that there are increased labor incentives that are strong incentives which can result to increased supply of labor in the market hence increasing job opportunities each year.
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. One thing that has happened to the individual income bracket is that the number of brackets remains the same but the income tax ranges of been changed with each having a lower tax rate on each range.By this law also the standard deductions of been changed where the married couples benefit a lot and also the personal exemptions and itemized deductions of been eliminated.
On the hand, when it comes to many businesses it is an advantage to them that the law has been set because the corporate tax rate has been reduced from the usual 35% to a flat corporate rate of 21%.The reduction or the amount that the businesses saves that is the 14% of the corporate tax rate can really be beneficial to the business because they can be able to fully experience the capital investment for almost the next five years.