The Tax Cuts and Jobs Act
So… yesterday’s Cut Cut Cut Act has become today’s Tax Cuts and Jobs Act. (I’m still mentally calling it the Trump tax plan.)
Is this act really going to cut taxes and create jobs? Let’s ask the Washington Post:
In a number of cases, the tax plan cuts back on tax benefits for families and individuals while expanding tax benefits for companies.
Well, I guess “cutting benefits” technically counts as “cuts.”
The Tax Cuts and Jobs Act, which you can read in full here–and which I have not yet read, because it is SUPER LONG and just released this morning—would cut the current individual tax brackets from seven to four. It would double the standard deduction, eliminate the personal exemption, and cut the mortgage interest deduction in half. 401(k) contribution limits would remain unchanged.
People would no longer be able to deduct state income taxes from their federal income taxes. They also would no longer be able to deduct moving expenses, alimony payments, student loan interest payments, or tax preparation expenses, even though more of us will probably need to hire people to help us understand the new tax laws if this bill passes.
The word “repeal” appears 112 times in the Tax Cuts and Jobs Act. The word “jobs” appears 14 times, and every single time is a reference to the act’s title.
For a more thorough overview of the Tax Cuts and Jobs Act, please refer to the Washington Post article linked above or to Business Insider’s summary; otherwise, let’s discuss in the comments.
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