Question

Taxes are the most contentious political topic. People's political views shape or are shaped by their views on taxes. The President Trump signed a massive tax overhaul in December 2017. It is important to understand how the new legislation will affect your family's taxes. Describe how the tax reform will affect your taxes (if you are an established tax payer) or your parents' taxes or the family that raised you.

Answer 1

Tax reform will affect your taxes:

To understand just where you fit in, and how the tax changes will affect you, read on.

if you have middle class people

Critics have been quick to paint the new law as a giveaway to the rich. There’s some truth to that, with more than 40% of cuts going to the top 5% of earners, according to the nonpartisan Tax Policy Center. but middle earner stand to benefit to at least in the near term. In 2018 middle-income households—those earning $49,000 to $86,000—will see a tax cut of $930 on average, the Tax Policy Center found.

The savings “cover about a year’s worth of gas for your car,” said House Speaker Paul Ryan at a press conference. “It can help you put away more money for college. It can help you save for retirement.”

if you are working freelancer

If you work for yourself, you may be in for an even better deal, with a new benefit that could cut your tax bill by up to roughly one fifth. While intended to promote hiring and investment by small-business owners, the new rules apply to anyone who is his or her own boss from Uber drivers to wedding photographers to freelance journalists.

if you are saving for retirement

While most Americans are focused on their personal tax bills, the centerpiece of the new tax law is actually a big tax cut corporation.it’s not yet clear how the changes will affect individual companies, especially firms bringing back money from overseas. Stock analysts hope companies will use a big slug of that money to repurchase their own stock, a practice that tends to boost earnings per share and ultimately stock prices.