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. 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 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. 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. 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 employment rate is predicted that should increase each year by at least rate of 0.6%, that is as years go by us from your 2018 to 2027 this is a very big impact on the employment sector as many people have hope for jobs. 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. Some of the changes that have happened on the individual income taxes include the changes on the individual level of income tax bracket and also lowered tax rate for individuals. The number of tax brackets has not changed but the ranges of been shifted but they have lower tax rates on different ranges. 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%. 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.