What will the near-term impact be?
On December 20, Congress passed the Tax Cuts & Jobs Act, sending the final version of the GOP tax reform bill to President Trump’s desk today. The legislation alters the Internal Revenue Code to a degree unseen since the 1980s, altering income tax brackets, marginal tax rates, key deductions and exemptions, and the taxation of corporations and pass-through businesses. These are just some of the adjustments.1
Every election that we can remember there are promises of change to Taxation, most of the time for less tax but always Big Reform is one of the topics that seems to attach itself to every political candidate. Then after the new blood gets into the “Big Chair”, or the old guard settles back down, the budget gets opened and the talks begin, and usually, taxes are added or deductions get eliminated. Many people expected the corporate tax rates to already be 15% from the election rhetoric of late but, no surprise, the changes to cut tax are always way harder to implement than changes to increase tax.
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