Making sense of the new tax bill that recently passed Congress has become a specialty of tax attorneys and certified public accountants.
Roxie Norris, Office Manager for Williams, Pitts & Beard in Hernando, was the guest speaker at a recent gathering of the Rotary Club of Hernando and shed some light on impacts to the pocketbooks and wallets of corporate bosses and employees alike.
"The exciting thing about this is that it's a pro-growth bill," said Norris, who gave an overview of tax cuts and predicted job growth as a result of the bill, which has now been signed into law.
"It's the significant tax reform bill in 31 years," Norris said. "It's pro-growth, especially on the business side due to radical reduction in corporate taxes."
Norris said estimates are that the estimated increase in the nation's GDP, or gross domestic product is 2.2 percent.
"This translates to approximately $3,000 per household," Norris said.
According to Norris, the best estimates are the tax bill will generate more than 339,000 new jobs.
An appealing aspect of the tax reform measure is that it will ostensibly reduce tax rates for most individual taxpayers.
The repeal of Obamacare or formally known as the Affordable Healthcare Act is a technical claim to the legislation by conservative opponents to its implementation because it starves federal funds set aside to subsidize health insurance companies covering individuals enrolled in the program.
That mechanism was put in place to stabilize the health insurance market. There is also the elimination of the Obamacare penalty for no health insurance coverage.
The bill does change a few things from past deductions allowed. No longer can business lunches be an itemized deduction and attorneys can no longer deduct expenses in a contingency fee case.
The Child Tax Credit for children under the age of 17 increases from $1,000 to $2,000 per child.
There is also the elimination of the moving expense deduction except for active duty military.
Norris said the bill is aimed at luring major companies back to U.S. soil and U.S. banks.
"Apple, a U.S. company, under a one-time reparation, will bring assets back to the U.S. to invest in the U.S. from overseas and bring $350 billion in cash," Norris said.
Norris sounded a somewhat partisan tone in her enthusiastic, upbeat support and assessment of the bill.
"You can thank the Republicans in Congress for getting this passed," Norris said.
Robert Lee Long is Community Editor of the DeSoto Times-Tribune. He may be contacted at firstname.lastname@example.org or at 662-429-6397, Ext. 252.