Every citizen is expected to pay taxes which is the main source of finances for every government in the world today as the use the funds to pay for the public services and also finance the operations of the state. Every business and individual must pay tax because it is a rule. When it comes to paying your tax as a business or as an individual, it is unavoidable because you a carpet directly or indirectly and that is why most 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. To counter the many weaknesses in the existing tax laws, the tax-cut and Job act 2017 was passed after going through the lawmaking process then signed by president Trump on 22 December 2017. There are employment, individual taxes and business taxes implications of the tax-cut and Job act 2017. You may require an attorney to explain to you the implications of the law because the law is complicated.
When it comes to employment, the tax-cut and Job act as implications in that it is predicted that the employment rate will be increasing each year at least by 0.6% that is from 2018 to 2017, that is an increment of employment each year. 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.
There individual income tax changes that have happened due to the tax-cut and Job act 2017.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 tax-cut and Job act 2017 as ensured that the standard deductions and family text of been changed benefiting the married couples and also it has eliminated the personal exemptions and itemized deduction.
It is a benefit to the many businesses because the corporate tax rate has been reduced from 35% to 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.