What the new Tax Reform means for you

The tax plan helps businesses more than individuals. Business tax cuts are permanent, while the individual cuts expire in 2025. Among individuals, it would help higher income families the most.
Everyone gets a tax cut in 2019. But in 2021, taxes will increase on those making $30,000 or less. The lower tax rate won’t make up for the deductions and credits they lose. By 2023, costs will rise on everyone who makes less than $40,000 a year. By 2027, those in the lowest 20 percent would pay higher taxes. That’s because the tax cuts expire in 2025.
The increase in the standard deduction would benefit 6 million taxpayers.  The Act increases the deficit by $1 trillion over the next 10 years. The Joint Committee on Taxation says it will increase growth by 0.7 percent annually, reducing some of the revenue loss from the tax cuts.
Many large corporations confirmed they won’t use the tax cuts to create jobs. Corporations are sitting on a record $2.3 trillion in cash reserves, double the level in 2001. The CEOs of Cisco, Pfizer, and Coca-Cola would instead use the extra cash to pay dividends to shareholders.  Shared from thebalance.com

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