The Tax Cuts and Jobs Act - The Tax Cuts and Jobs Act There was a lot of changes that happened in the Tax Cuts and Jobs Act(TCJA I think the most

The Tax Cuts and Jobs Act - The Tax Cuts and Jobs Act...

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The Tax Cuts and Jobs Act There was a lot of changes that happened in the Tax Cuts and Jobs Act (TCJA). I think the most shocking was the change from Worldwide to Territorial tax system. I understood at the time the rate would be reduced and the Corporations would be able to bring back billions of dollars in profit. What I did not know or understand was that they could use Foreign tax credits to reduce the taxable income. They would be allowed to make the payments over the course of 8 years, and it would be a one-time tax payment. I understand the want from lawmakers to incentivize corporations in to bringing their profits back to the US. The short-term benefits seemed like a great idea to spur economic growth, but I do not believe they outweigh the consequences of the rising national debt and the Act not having revenues greater than the expenses until year 8. It does not specify when they would pay for the debt that was added. Also, the reinvest part of the deal could reduce the taxes even further but I was wondering if this meant like stock buybacks or not. Another thing I found interesting was the individual exemptions were removed and tried to be compensated by adding more for child tax credits. I feel like this further complicated this issue and created more phaseouts. As mentioned by Professor Ambrosio, the idea was that this tax overhaul would further simplify the tax code but I think it made it worse. As most of my friends are of the age of purchasing homes, they are very upset at the tax limitation of $10,000 for property taxes for expensive property tax rates in Seattle and the surrounding area. It was a great benefit to offset taxable income with this big deduction. Professor Ambrosio made a good point about counties taking money from the government but the benefit was made to taxpayers and counties could charge any amount they wanted.

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