Tax Cuts and Jobs Act of - WikipediaEconomist with a strong background in economic and econometric modeling. His analyses of public policy issues have been published in academic journals and the media. Assists clients on tax policy issues. Focused on revenue and economic impacts of policy changes. T his analysis focuses on the effects of the TCJA on the tax liability of businesses, presenting the estimated effects by both sector C corporations versus pass-through businesses 1 and major industry.
2018 Income Tax Changes For Individuals (2018 Federal Income Tax Rules) (Tax Cuts and Jobs Act 2018)
Preliminary Details and Analysis of the Tax Cuts and Jobs Act
The Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year ,  Pub. Major elements of the changes include reducing tax rates for businesses and individuals, increasing the standard deduction and family tax credits, eliminating personal exemptions and making it less beneficial to itemize deductions, limiting deductions for state and local income taxes and property taxes, further limiting the mortgage interest deduction, reducing the alternative minimum tax for individuals and eliminating it for corporations, reducing the number of estates impacted by the estate tax, and cancelling the penalty enforcing individual mandate of the Affordable Care Act ACA. The Act is based on tax reform advocated by congressional Republicans and the Trump administration. The individual and pass-through tax cuts fade over time and become net tax increases starting in while the corporate tax cuts are permanent. This enabled the Senate to pass the bill with only 51 votes, without the need to defeat a filibuster , under the budget reconciliation process. The bill was signed into law by President Donald Trump on December 22, Most of the changes introduced by the bill went into effect on January 1, , and did not affect taxes.
TPC has updated its comparison chart to show how the TCJA from the conference committee would compare against current law. We find the bill would reduce taxes on average for all income groups in both and In general, higher income households receive larger average tax cuts as a percentage of after-tax income, with the largest cuts as a share of income going to taxpayers in the 95th to 99th percentiles of the income distribution. On average, in taxes would change little for lower- and middle-income groups and decrease for higher-income groups. Compared to current law, 5 percent of taxpayers would pay more tax in , 9 percent in , and 53 percent in Including macroeconomic effects and interest costs, the legislation is projected to increase debt as a share of GDP over 5 percentage points in to 97 percent of GDP, and almost 4 percentage points in to percent of GDP. To brush up on some tax policy basics, or to refer to our previous analyses, see our Prepping for the Tax Reform Debate collection page.