- For all of you that must take a required minimum distribution from your IRA, you will be happy to know you will be able to continue to make charitable contributions from your IRA.
- Everyone will receive a 2% reduction in your tax bracket, with the exception of the 10% tax bracket.
- Families with children will now receive a $2,000 tax credit per child under the age of 17, in place of the current $1,000 tax credit per child for families with income below $110,000 for married couples ($75,000 for single parents).
- Though some opponents to the new tax bill claim it is a “giveaway” to the wealthy, the “small” person gets proportionally more, e.g., if you pay $1,000,000 in taxes you will pay 2% less or $20,000 – if you pay $10,000 in taxes you will pay 2% less or $200. However, everybody receives a reduction unless you pay a lot in real estate taxes or state income taxes. If that applies to you, you will likely pay more.
- For businesses, there is an enormous incentive both to bring money ”home” from low tax countries and reinvest the money in “capital expenditure,” because they will get to write off an offsetting amount immediately instead of depreciating over several years. To me, this is potentially the most important part of the whole new law, because it will most likely create the most jobs, increase wages, and increase profits for which investors like yourself will benefit.
- The small business owner is likely to see a big reductions in taxes on part of their income.
As always if you have questions, please call.
George E. Bates