President Trump signed the first major tax reform bill since the Reagan Administration, and among the $1.5 trillion tax bill there are several changes businesses and individuals should expect to take place over the coming year.
- Cuts the corporate tax rate to 21% from 35%
- Cuts five of the seven tax personal tax brackets:
- 10% (unchanged), 12% (15%), 22% (25%), 24% (28%), 32% (33%), 35% (unchanged), 37% (39.6%)
- Creates a 20% deduction for the first $315k of qualified business income for joint filers of pass-through businesses (39.6% previously)
- Business interest deductibility up to 30% of modified income
- Retains Research & Development Tax Credit
- Exempts US corporations from US taxes on most future foreign profits
- Allows for net excess business losses in excess of $500k to become net operating losses carried over to the next year
- Deductibles for business interest are limited to interest greater than 30% of income
- Preserves tax credits for electricity production from wind, biomass, geothermal and hydropower
- Increases standard deduction to $12k for individuals ($6,350 previously) and to $24k for married couples ($12,700 previously)
- Doubles the child tax credit to $2k
- Repeals the penalty associated with the individual mandate under the Affordable Care Act
Attend the D.C. Fly-In
The Fort Worth and Dallas Regional Chambers will be taking our bi-annual a business member delegation to Washington D.C. to meet with key congressional and administration officials April 16 -17.
Topics on the itinerary include tax reform, immigration, infrastructure, health care and trade.
If you would like to attend the D.C. trip, please let me know and I will forward you details as they are confirmed.
If there are additional federal, state or local issues affecting your business, please do not hesitate to call or email.
Matt Geske, VP Government Affairs