Tax & Job Cuts Act Accounting, Finance, SPSS Essay (Essay Sample)
The Tax Cuts and Jobs Act was signed on December 22, 2017 and produced some of the most significant impacts in tax law in over 30 years. In this assignment, you will use the Internet or the Strayer University Online Library (https://research(dot)strayer(dot)edu) to research the tax reform changes brought about by the Tax Cuts and Job Act, analyze the impact these changes have on individual tax payers, and identify related tax planning strategies.
Summarize the purpose of the Tax Cuts and Jobs Act and explain the main objective(s) for its implementation.
Examine three significant changes brought forth by the Tax Cuts and Jobs Act and discuss at least two advantages and/or disadvantages of each.
Analyze the impact that each of the three significant changes has on the taxpayer as an individual and a family.
Recommend tax planning strategies to maximize tax savings based on the three significant changes identified. Provide a rationale.
Use at least three quality academic resources in this assignment.
Note: Wikipedia and similar websites do not qualify as academic resources. Internet websites that include a .gov or .org extension qualify as quality academic resources.
Tax Cuts and Jobs Act
Tax Cuts and Jobs Act
Tax Cuts and Jobs Act (TCJA), a legislation on tax that was passed into law on the 22nd Dec 2017, came as a reprieve to taxpayers even though the tax relief temporarily runs up to December of 2025. The most notable changes to personal income tax associated with TCJA relate to the standard deduction, itemized tax, and income tax rates. The act also made significant changes to pre-existing provisions like Alternative Minimum Tax (AMT), family tax credits, child tax credit, above-the-line deductions, among others (York & Muresianu, 2018). The main objective of the reforms proposed by TCJA was to caution low-income earners and minimize the hassle for individual taxpayers when filing. The law also intended to salvage the economy by tightening the knob on importation tax, since tax relief on income tax slashes the federal revenue by close to $165 billion annually (York & Muresianu, 2018). TCJA has come under heavy criticisms (Knoll, 2019), both positive and negative, with some claiming that the law was rushed and based on political lines while others praise it for cautioning the low and middle-income earners. Nonetheless, the tax law surely has made some significant alteration to the lives of taxpayers, both positively and negatively.
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