Tax code reform will remain complex despite GOP pledge to simplify
Despite promises from the GOP to simplify the tax code with their latest overhaul, the new tax code is expected to still be complicated for Americans to navigate.
The Tax Cuts and Jobs Act was signed into law by President Trump in December 2017, aiming to make filing taxes easier for individuals and businesses. The legislation lowered the tax rates for most income brackets, doubled the standard deduction, and made changes to various deductions and credits.
However, tax experts and analysts argue that the new tax code is far from simple. One of the complicating factors is the numerous changes made to deductions and credits, such as the elimination of personal exemptions and the cap placed on state and local tax deductions. These changes can make it difficult for individuals to determine which deductions they are eligible for and how to properly claim them.
Furthermore, the new tax code introduced a complex system of pass-through entities, where income from businesses such as partnerships and S corporations is passed through to the owner’s individual tax returns. Determining the tax implications of this arrangement can be confusing and time-consuming for taxpayers.
Additionally, the new tax code retained various tax breaks and credits that individuals and businesses can claim, further adding to the complexity of the tax system. For example, the Child Tax Credit was expanded and the Alternative Minimum Tax was maintained, both of which require taxpayers to navigate additional rules and calculations.
Overall, the new tax code may offer some benefits to taxpayers, such as lower tax rates and a higher standard deduction. However, the complexity of the changes and the various deductions and credits available make it challenging for individuals and businesses to understand and comply with the new tax laws.
In order to navigate the complexities of the new tax code, taxpayers may need to seek the help of a professional tax advisor or use tax software to ensure they are accurately filing their taxes and taking advantage of any available deductions and credits. Despite the GOP’s promise to simplify the tax code, it seems that Americans will still face a complicated tax system for the foreseeable future.
#tax #code #complicated #GOP #promise #simplify