The Tax Cuts and Jobs Act: Half a Year Later
The Tax Cuts and Jobs Act was signed into law last December, and implementation began in 2018. The purpose of the act is to reduce the corporate tax rate, allow increased expensing of costs, and eliminate the Alternative Minimum Tax.
It’s been over six months since the Act was passed, and while it is too early to predict long-term benefits, it’s undeniable that taxpayers are already seeing some positive changes.
Among them are the many workers who are seeing an increase in their paychecks. Utility bills for electric, gas, and power are dropping. More products are being made in America instead of overseas. More jobs are available than in decades and the unemployment rate has dropped to its lowest in more than fifteen years.
Over the next six months and into the 2019 tax season, we will see more of what’s to come with the Tax Cuts and Jobs Act. But I believe that by what we have seen so far, consumers benefit with more disposable income and businesses and corporations are investing more in capital improvements, are hiring more people and are providing higher wages.
This economic growth is long overdue but can also get overheated. The Federal Reserve is increasing interest rates to keep things from becoming too speculative. President Trump’s new tariffs and the threat of a trade war that could even include our allies can also throw cold water on growth.
It’s a very tricky balancing act. Unfortunately, whether it’s balancing policies or budgets, progress is never made through partisan politics, the disease that has gripped our nation for the past ten years. So ask your representatives in Washington when their bickering will end so prosperity can be preserved?