The Viking Vanguard

Republicans Pass New Tax Bill

Andrew Flury, Staff

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The new Republican tax bill, the Tax Cuts and Jobs Act, passed the House of Representatives with a 227-207 vote Nov. 9. It passed through the Senate Dec. 2. The reform means different things for different people but here are the most important aspects of the bill, according to the Ways and Means Committee:

Tax Brackets: The seven current tax brackets would be reduced to four, meaning more people pay the same tax rate.

Deductions: The standard tax deduction increases from $6,350 to $12,000. A tax deduction decreases one’s taxable income, so an increase in tax deductions means a decrease in taxes.

Child Tax Credits: Tax credits work like tax deductions, reducing income tax. Under the new Republican plan, the child tax credit increases from $1,000 to $1,600 per child.

Corporate Tax Rate: The corporate tax rate decreases from 35 percent to 20 percent.

Pass-through Tax Rate: Pass-through businesses are businesses that do not pay taxes directly but have the income of their owners taxed. The new Republican plan would place a separate 25 percent tax rate on these sort of businesses.

 

To calculate one’s predicted taxes under the new plan: https://www.marketwatch.com/story/the-new-trump-tax-calculator-what-do-you-owe-2017-10-26

For more information on the Tax Cuts and Jobs Act:

Official overview from the Ways and Means Committee: https://waysandmeans.house.gov/taxreform/

British Broadcasting Company Overview: http://www.bbc.com/news/business-41849094

New York Times Overview: https://nyti.ms/2yutLPh

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Republicans Pass New Tax Bill