Briefly describe what the recent changes made to the tax law

Briefly describe what the recent changes made to the tax laws for INDIVIDUALS not corporations are. Discuss how these changes are implemented and what differences there actually are.

Solution

Recent changes made in tax law as follow.

1 Reduce corporate tax rate from 35% to 20%.

2 Reduce and consolidated the individual tax rates in to three brackets: 12%, 25%, and 35%, double the standard deduction and eliminate the personal exemption.

3 Reduce tax on S corporation, partnership, sole proprietorships to 25%.