Page 6 - Tax_Law.pdf
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Oh, and the individual mandate on shareholders of S-corporations, LLCs and
health insurance has been scrapped. partnerships -- who pay their share of the
Republicans failed to repeal Obamacare business' taxes through their individual tax
earlier this year, but they managed to get returns -- has been lowered via a 20%
rid of one of the health law's key deduction. The legislation includes a rule
provisions with tax reform. The elimination to ensure owners don't game the system,
of the individual mandate, which penalizes but tax experts remain concerned about
people who do not have health care, goes abuse of this provision.
into effect in 2019. The Congressional
Budget Office has predicted that as a
result, 13 million fewer people will have
insurance coverage by 2027, and
premiums will go up by about 10% most
years.
You won't be able to file your tax
return on a postcard.
Trump said H&R Block would go out of
business after tax reform because filing
taxes would become so simple. Not quite.
While doubling the standard deduction will Not all CEOs think they'll use their
ease the process for some individuals, savings to create jobs, though.
there's still a web of deductions and Just 14% of CEOs surveyed by Yale
credits to work through. And for small University said their companies plan to
businesses, filing could become even make large, immediate capital investments
more complicated. in the United States following tax reform.
Capital investments, like building plants
The corporate tax rate is coming and upgrading equipment, can spur hiring.
down.
The corporate tax rate has been cut from Plus, the way multinational
35% to 21% starting next year. The corporations are taxed is about to
alternative minimum tax for corporations change.
has been thrown out altogether. Earnings The U.S. is switching to a territorial system
are expected to go up as a result.
of taxation, which means companies won't
owe federal taxes on income they make
Pass-through entities will also get a offshore. To help the transition, companies
break. will be required to pay a one-time, low tax
The tax burden by owners, partners & rate on their existing overseas profits --
P.G. Better Living
