Want to know more about tax cuts? Here are the facts.
With news yesterday that Congress passed the first overhaul of the U.S. tax system in more than three decades, many Americans want to know what the final bill means for them.
Here are the key provisions to understand and share with your loved ones:
- The Tax Cuts Act means less money taken out of Americans’ paychecks. It provides $5.5 trillion in tax cuts by doubling the standard deduction, doubling the child tax credit, protecting tax savings for higher education and retirement, and lowering rates across the board.
- The bill puts American businesses on a level playing field with foreign competitors. America’s corporate tax rate will go from being the highest in the developed world to below the average for Organization of Economic Co-operation and Development (OECD) countries.
- The act will eliminate dozens of special interest tax breaks and loopholes. It tosses out a loophole used to deduct compensation for executives earning more than $1 million a year. Washington isn’t spared, either: Members of Congress will no longer be able to deduct living expenses.