U.S. stocks closed at a record high on Monday.
This was due to the growing confidence that the GOP will succeed in passing tax-cut legislation as early as this week.
With a 500-page overhaul on tax codes, the new proposed bill will lower the corporate tax rate to 21% from 35% and serve as an immediate boost to earning.
While nearly half of Americans oppose the GOP tax bill, Republicans move forward to implement tax codes that gut current codes.
From the perspective of markets and major conglomerates, it is a great time to be in business. Nonetheless, most Americans prepare for a huge tax hit or some sort of economic loss with huge consequences.
Here are some aspects of the bill.
- Creates a new 20 percent small business deduction
- Institutes that the first $24,000 of earnings are not taxed
- Replaces the 15 percent income tax bracket with an initial 12 percent tax bracket for income up to $77,400.
- Eliminates the 25 and 28 percent tax rates on small businesses in favor of expanded lower rates.
- Subsidizes private, religious school education which places pressure on local, public school spending
- Provides provision where companies can deduct a significant portion of expenses in their move to automation or robots as workers
- Rejects expansion to expand tax credit for children and families
- Sets up cuts to Social Security, Medicare and Medicaid to pay for tax incentives
- Exempts up to $22 million for estate tax or those who inherit wealth
- Allows fetuses to be named as beneficiaries of college savings accounts known as 529 plans (that allow no taxes to be paid on them). This is another way of putting your phone bill in your kids’ name, but bigger.
- Opens Alaska’s National article to drilling; endangering the local wildlife and forestry plus the indigenous people, the Gwich’in, tribal people in northern in northern Alaska