The Tax Cuts and Jobs Act was signed into law by President Trump in December of 2017, becoming the first tax code change in the nation in 31 years. With this bill, a typical middle-income family of four earning the median household income of $59,000 a year will receive a $1,182 tax cut.
For businesses, this new law will address multiple areas to benefit their overall success. This bill will:
- lower the corporate tax rate to 20%, down from 35%
- Reduce the tax rate on Main Street Job Creators to no more than 25%
- Establish strong safeguards to distinguish between individual wage income and "pass-through" business income
- Allow businesses to immediately write off the full cost of new equiptment to improve operations and enhance the skills of their workers
- Protects the ability of small businesses to write off the interest on loans
- Retains the low-income housing tax
- Modernizes the international tax system so America's global businesses will no longer be held back by an outdated "worldwide" tax system.
- Makes it easier and far less costly for American businesses to bring home foreign earnings to invest in creating jobs