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. It is that every business or individual should be their taxes. There are different types of taxes, direct and indirect which means that you can’t avoid paying the taxes hence people call it an unavoidable evil. Examples of operations that are funded by the finances from the taxpayer include the public services such as hospitals, schools, roads and so on and also the finances are used to pay public servants such as teachers, doctors, the government officials to name but a few.
There are weaknesses that arise from different laws that have been set overtime to govern the process of tax payment that is why there’s always changes being done in-laws being said to counter the weaknesses in a certain law especially tax payment process. Through the lawmaking process, the tax-cut and Job act in 17 was passed after going through the process to counter the weaknesses of the existing tax law which was signed by president Trump on the 2 December 2017. The tax-cut and Job act 2017 as the impact on both employment, personal taxes and corporate taxes. 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. What the law meant to do in employment is to increase the labor incentives to be strong leading to an increased supply of labor in the market.
The law has implications for individual income taxes. For instance, there are tremendous changes on the individual level of income tax bracket, there are lower tax rates for an individual. 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. The standard deductions and family credits have also been changed by this law benefiting the married couples, and also the personal exemptions and itemized deductions are being 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.