Wednesday, December 20, 2017

Find Your New Tax Bracket: Full Details on the Newly Passed Tax Reform Bill

Below are the new tax brackets for the just passed Tax Reform bill. The data is provided by the powerhouse law firm Davis Polk & Wardwell LLP.

The firm writes:
The GOP tax bill, passed by both houses of Congress and awaiting the President’s signature, is the most significant tax reform enacted since 1986. The measure, popularly known as the Tax Cuts and Jobs Act (“TCJA”), makes major changes to the taxation of individuals, modifying individual tax brackets and marginal tax rates, while limiting (or eliminating) deductions and exemptions. However, much of the meat of the new law is on the business side, where it fundamentally changes the taxation of corporations, passthrough entities and multinational groups. Given the speed of the legislative process, many technical issues and drafting errors remain unaddressed in the final legislation. Some glitches may be addressed in the “Bluebook” to be prepared by the staff of the Joint Committee on Taxation sometime in 2018. There also will be a great deal of pressure on Treasury and the IRS to issue guidance on the new rules, and key lawmakers have already signaled the need for a technical corrections bill in 2018. 
This memorandum, one of a series on the TCJA, summarizes the new rate structures for individuals and corporations and the new capital expensing rules. It also provides an overview of (and links to) the other memoranda in this series.
Read the rest here.

(ht Felix Bronstein)

1 comment:

  1. Based on 2016's numbers, I would get a whopping tax cut of $324.