Tax reform was a key aspect of the current administration’s campaign platform. Earlier this fall, Republicans released a high-level version of the plan that proposes significant changes to the ways that individuals and businesses are taxed. A detailed version of the plan is not due to be released until Wednesday, November 1, but in this episode, we have a spirited discussion about what we know now and its possible impact on taxpayers. We also talk about the history of taxes in the US, how they work now and how we feel about them, and what we mean when we talk about tax reform. We hope that you enjoy listening to this episode as much as we enjoyed recording it.
While listening, it may help to have this handy explanation of how tax is calculated in mind:
INCOME – ADJUSTMENTS – EXEMPTIONS – DEDUCTIONS = TAXABLE INCOME * TAX RATES
As always, we want to hear from you: how do you feel about taxes? What are the things about taxes that you find the most confusing? How do you think the administration’s tax reform plan will impact you and/or your business? Let us know in the comments!
For articles and more information, check out the show notes under the cut.
Mentioned on the show:
The high-level version of the Republican tax plan
If you prefer visuals, the NY Times outlines the plan in 6 charts
A brief history of taxes in the US
An IRS survey finds that 90% of Americans see paying taxes as a civic duty
Part of understanding how tax reform will impact you involves knowing the difference between tax rates and tax brackets
The impact of the plan on small business owners may depend on what we mean by small business, which can vary widely by industry