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In this episode, we ask:
- What is going on with the new tax law (the Tax Cuts and Jobs Act)?
- What’s new with personal taxes?
- What does the tax code encourage?
- Where are the tax breaks?
- How is the effective tax rate different from the marginal tax rate?
- How does this affect the Mortgage Interest Deduction?
- How much will this raise the federal deficit?
- What about the Affordable Care Act / Obamacare tax?
- How does this affect the socioeconomic structure in the U.S.?
- What is the hope of the tax law?
- What about the Estate Tax?
- What about the Child Tax Credit?
- What’s the difference between the credit and a deduction?
- How do we stack up compared to the rest of the world in corporate tax rates?
- What’s new with corporate taxes?
- What are the updates with pass-through income?
- What happens to the net interest deduction?
- What about the carried interest loophole?
- What are some of the areas where it’s all stayed the same?
- Tax handling of Qualified Plans will continue unchanged (529s may be accessible for K-12 tuition needs, this varies by state.)
- Will more people choose the standard deduction over itemized deductions?
- Will people continue charitable giving?
- Did the new law simplify the code?
- Does the new tax law truly provide cuts?
- Are you seeing an increase in take-home pay with the tax shift?
- Why is the word “Jobs” in the title?
- Are we in the lowest tax brackets of our lifetimes right now?
- When do most of these changes expire?
- What should we be doing with our money in light of these temporary changes?
- Is this the best time to be deferring taxes?
- How is every 401(k) being taxed?
- What is something we can pay the tax on TODAY, so we don’t have to pay tax on it in the future?
- How many trillion dollars is currently sitting in qualified accounts?
- What is the amount of the government’s unfunded liabilities?
Note: We are not tax experts. Please consult your CPA, your attorney and your tax specialists as you navigate the new tax law.
| Single filers, 2018-2025 | ||
| Taxable income over | Up to | Marginal rate |
| $0 | $9,525 | 10% |
| $9,525 | $38,700 | 12% |
| $38,700 | $82,500 | 22% |
| $82,500 | $157,500 | 24% |
| $157,500 | $200,000 | 32% |
| $200,000 | $500,000 | 35% |
| $500,000 | And up | 37% |
| Heads of household, 2018-2025 | ||
| Taxable income over | Up to | Marginal rate |
| $0 | $13,600 | 10% |
| $13,600 | $51,800 | 12% |
| $51,800 | $82,500 | 22% |
| $82,500 | $157,500 | 24% |
| $157,500 | $200,000 | 32% |
| $200,000 | $500,000 | 35% |
| $500,000 | And up | 37% |
| Married couples filing jointly, 2018-2025 | ||
| Taxable income over | Up to | Marginal rate |
| $0 | $19,050 | 10% |
| $19,050 | $77,400 | 12% |
| $77,400 | $165,000 | 22% |
| $165,000 | $315,000 | 24% |
| $315,000 | $400,000 | 32% |
| $400,000 | $600,000 | 35% |
| $600,000 | And up | 37% |
| Married couples filing separately, 2018-2025 | ||
| Taxable income over | Up to | Marginal rate |
| $0 | $9,525 | 10% |
| $9,525 | $38,700 | 12% |
| $38,700 | $82,500 | 22% |
| $82,500 | $157,500 | 24% |
| $157,500 | $200,000 | 32% |
| $200,000 | $300,000 | 35% |
| $300,000 | And up | 37% |
|
Source: Joint Committee on Taxation. |
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