(Newswire.net — December 19, 2017) — While we all have our attention on the busy holiday season, Republicans and Democrats are busying themselves with a new tax bill. It’s being presented by the GOP party and will have Trump’s seal of approval, so of course there is Democrat opposition to it.
As the year closes out we should all be thinking of our year end tax plan, so what better time to have a new tax bill lurking around the corner? Whether you’re a business owner or employee, everyone will experience the impact of this new tax reform, so let’s see what it entails.
The Proposed Tax Bill
The current tax setup was adjusted by Barack Obama and his administration at several key times, perhaps most notably in 2010 with a nearly trillion-dollar tax cut. Many Americans have become used to the way things are when it comes to taxes, which is perhaps why there are strong feelings regarding a change. The new tax bill is facing much scrutiny, with many politicians and voters on both sides saying it will be great, or it will be a disaster.
The bill looks to change the way households are taxed based on the amount of income they make, if they file married, single, or head of household, whether or not they have dependents, and whether or not they take the standard deductions.
What Changes?
In its most recent incarnation, the GOP tax bill appears like it will cut taxes for the majority of households in the United States. There will also be changes for business owners and the self-employed, so no matter how you earn your money you’ll want to see how things will change for your particular situation.
Running The Numbers
A single mother earning $40,000 a year with two children would see a tax cut of roughly $1,290. A married couple earning $125,000 a year with two children would see a cut of $3,340. A bachelor earning the same $125,000 a year with no children would see a cut of $2,790.
So who will end up paying more? Playing with the numbers a little more we find that a single person making $20,000 a year with no kids will not get a tax cut or a tax hike. High earning married couples that have reached middle age without children will end up paying more, all else being equal.
Why All The Fuss?
Anything President Trump does is held under the microscope, and taxes harbor a lot of emotions for many individuals. Combine those two and it’s a source of much political debate, one that will have actual real world consequences that each American will feel one way or another.
Will It Pass?
In all likelihood the bill will pass, it’s just a matter of what it will look like when it’s all ironed out. These changes could take place rather quickly if they get it signed into law by January 1, 2018. This means that it will come into play when you go to file your taxes before April 15th, 2019.