Tax Reform or Tax Scam: You be the Judge!
05/24/2018
• A number of major provisions in TCJA are scheduled to expire over the next eight years. In 2025, most of the individual income tax changes in TCJA are set to expire.
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The reduction of individual income tax rates will expire |
After the end of 2025 |
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The increase in the standard deduction, elimination of the personal exemption, and doubling of the child tax credit will expire |
After the end of 2025 |
|
Limits on the state and local tax deduction and the mortgage interest deduction will expire |
After the end of 2025 |
|
The reduction of the alternative minimum tax will expire |
After the end of 2025 |
|
The reduction of the estate tax will expire |
After the end of 2025 |
• In 2021 and 2022, several policy changes are scheduled to take place which would raise taxes on U.S. business investment.
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Businesses will be required to deduct research and experimentation costs over five years, rather than immediately |
After the end of 2021 |
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The deduction for business net interest expense will be limited to 30% of EBIT, rather than 30% of EBITDA |
After the end of 2021 |
|
Full expensing for short-life business investments will begin phasing out |
After the end of 2022 |
EBIT (“earnings before interest, taxes”)
EBITDA (“earnings before interest, taxes, depreciation, amortization”)
• In 2025, two more policy changes are scheduled to take place which would raise taxes on U.S. businesses.
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The newly created pass-through deduction (§199A) will expire |
After the end of 2025 |
|
Three international-related provisions (GILTI, FDII, and BEAT) will become more restrictive |
After the end of 2025 |
GILTI (the inclusion of “global intangible low-taxed income”)
FDII (“foreign derived intangible income”)
BEAT (the “base erosion and anti-abuse tax”)
•There’s more work to be done to improve the U.S. tax code.
........................... UNDERSTATEMENT OF 2018
Question: “Is there anyone in the room who thinks this is real tax reform?”
The answer to all of this dilemma is to Pass the FAIRtax!
Tax Reform Isn’t Done
Scott Greenberg
March 8, 2018
https://files.taxfoundation.org/20180307164616/Tax-Foundation-FF578.pdf
- FairTax News
- The Alabama Economic Freedom Act, Alabama's FairTax
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07/09/2014 - IRS In ‘Bunker Mentality’ As Interest Groups, Media Join Congress In Seeking Information
07/09/2014 - New Info Suggests Lois Lerner Knew Of; Feared Congress’ Subpoena Power Over IRS Communications
07/09/2014 - The Foreign Account Tax Compliance Act (FATCA) Articles
07/01/2014 - Is FATCA the Worst Part of the Internal Revenue Code?
07/06/2014 - Under the Good Jobs-Report Hood
07/05/2014 - News Archive
