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As an entrepreneur myself, I know how important opportunities can be and how much the decisions made by your government can affect your success rate. The opportunities that the United States has put forth have enabled me to build my multibillion-dollar fintech company.
The United States Senate and House of Representatives passed a final version of the Tax Cuts and Jobs Act on December 20, 2017. The act was based on the Trump administration’s plans presented back on September 27, 2017.
This plan will cut income tax rates and double the standard deduction while reducing itemized deductions and changing child, elder care and business taxes.
The final plan cuts the corporate tax rate from 35% to 21% in 2018 and temporarily lowers the income tax at nearly all levels. Singles with an annual income between $9,525 and $38,700 will see a drop from 15% to 12% and singles with an annual income of over $500,000 see a drop from 39.6% to 37%.
Final Tax Plan:
| Current Income Tax Rate | 2018 Income Tax Rate | Single Income Levels | Married-Joint Income Levels |
| 10% | 10% | $0-$9,525 | $0-$19,050 |
| 15% | 12% | $9,525-$38,700 | $19,050-$77,400 |
| 25% | 22% | $38,700-$82,500 | $77,400-$165,000 |
| 28% | 24% | $82,500-$157,500 | $165,000-$315,000 |
| 33% | 32% | $157,500-$200,000 | $315,000-$400,000 |
| 33%-35% | 35% | $200,000-$500,000 | $400,000-$600,000 |
| 39.6% | 37% | $500,000+ | $600,000+ |
The only group that will not see lower income taxes under this plan would be the lowest earning bracket of under $9,525 per year for single taxpayers and under $19,050 for those filing jointly. Their income tax rate would stay at 10%.
The final tax bill still allows for certain itemized deductions (if opting out of the newly doubled standard deduction) -- such as charitable contributions, state, local and property taxes (deductions of which are now capped), retirement savings and mortgage interest.
While many deductions and other factors were otherwise altered, including deductions for medical expenses, moving, theft or loss of valuables, electric vehicles credits and married/joint filers, I would like to focus specifically on how the Trump administration’s tax plan may affect your business.
The plan allows corporations to deduct state and local taxes and doubles estate tax exemptions and helps the 1% who pay them while contributing about $17 billion in taxes.
The Alternative Minimum Tax will remain, but will now raise the income bracket for those affected to those with incomes over $70,300 (as single filers) or $109,400 (as married/joint filers).
The plan will also benefit small business owners, encouraging investments by allowing businesses to deduct the cost of depreciable assets in one year versus amortizing them over several years.
">I run a successful e-commerce business providing services in 196 countries. My company, Allied Wallet, handles digital payments and focuses on e-commerce and multicurrency transactions.
My experience in so many countries with varying governments, laws and economies has given me a unique view of how some countries have succeeded and how some have been less successful.
Each country’s tax plan is very important for the overall growth of its country, economy and its citizens. It not only has a large effect on their workers' take-home pay, but it plays a large role in their opportunities.
Shutterstock
As an entrepreneur myself, I know how important opportunities can be and how much the decisions made by your government can affect your success rate. The opportunities that the United States has put forth have enabled me to build my multibillion-dollar fintech company.
The United States Senate and House of Representatives passed a final version of the Tax Cuts and Jobs Act on December 20, 2017. The act was based on the Trump administration’s plans presented back on September 27, 2017.
This plan will cut income tax rates and double the standard deduction while reducing itemized deductions and changing child, elder care and business taxes.
The final plan cuts the corporate tax rate from 35% to 21% in 2018 and temporarily lowers the income tax at nearly all levels. Singles with an annual income between $9,525 and $38,700 will see a drop from 15% to 12% and singles with an annual income of over $500,000 see a drop from 39.6% to 37%.
Final Tax Plan:
| Current Income Tax Rate | 2018 Income Tax Rate | Single Income Levels | Married-Joint Income Levels |
| 10% | 10% | $0-$9,525 | $0-$19,050 |
| 15% | 12% | $9,525-$38,700 | $19,050-$77,400 |
| 25% | 22% | $38,700-$82,500 | $77,400-$165,000 |
| 28% | 24% | $82,500-$157,500 | $165,000-$315,000 |
| 33% | 32% | $157,500-$200,000 | $315,000-$400,000 |
| 33%-35% | 35% | $200,000-$500,000 | $400,000-$600,000 |
| 39.6% | 37% | $500,000+ | $600,000+ |
The only group that will not see lower income taxes under this plan would be the lowest earning bracket of under $9,525 per year for single taxpayers and under $19,050 for those filing jointly. Their income tax rate would stay at 10%.
The final tax bill still allows for certain itemized deductions (if opting out of the newly doubled standard deduction) -- such as charitable contributions, state, local and property taxes (deductions of which are now capped), retirement savings and mortgage interest.
While many deductions and other factors were otherwise altered, including deductions for medical expenses, moving, theft or loss of valuables, electric vehicles credits and married/joint filers, I would like to focus specifically on how the Trump administration’s tax plan may affect your business.
The plan allows corporations to deduct state and local taxes and doubles estate tax exemptions and helps the 1% who pay them while contributing about $17 billion in taxes.
The Alternative Minimum Tax will remain, but will now raise the income bracket for those affected to those with incomes over $70,300 (as single filers) or $109,400 (as married/joint filers).
The plan will also benefit small business owners, encouraging investments by allowing businesses to deduct the cost of depreciable assets in one year versus amortizing them over several years.
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