Explain about Compare the Tax Cuts and Jobs Act of 2017 with The Tax Reform Act of 1986.
Explain about Compare the Tax Cuts and Jobs Act of 2017 with The Tax Reform Act of 1986.
The Tax Cuts and Jobs Act of 2017 (TCJA) is the most significant federal tax legislation enacted in more than 30 years. The Tax Reform Act of 1986 (TRA86) was a comprehensive tax reform legislation that lowered tax rates, eliminated many deductions, and simplified the tax code. The TCJA builds on the TRA86 by further simplifying the tax code and reducing tax rates for individuals and businesses.
The TCJA lowers the individual tax rates to 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The standard deduction is nearly doubled to $12,000 for single filers and $24,000 for married couples filing jointly. The personal exemption is eliminated. The Child Tax Credit is increased from $1,000 to $2,000 per child, and the income thresholds at which the credit phases out are increased. The TCJA also repeals the individual mandate under the Affordable Care Act.
Step by step
Solved in 2 steps
