The Republican led 2017 tax cuts may be permanent if House Republicans can push through a new legislation to make it so. This includes “pass-through” income for businesses that are owned by an individual. Despite the $1.5 trillion in debt increase and a massive business tax cut from 35% to 21%, many Americans are luke warm about the legislation with all Democrats and Republican deficit hawks opposing the extensions.
The truth of the large tax cuts is that, unless you’re in the top 10% – 20% of earners in America, the additional amount of money earned was essentially a pittance in comparison to your past salary. Still, there are some good things within the new legislation, in particular, a “universal savings account” for those that want a tax-free earnings that is easier to withdraw than existing retirement accounts. “In addition, the Republican plan would allow the popular, tax-free 529 college savings accounts to also be used to pay for apprenticeship fees and home schooling expenses, as well as paying off student debt. Also, workers would be able to tap their retirement savings accounts without tax penalty to cover expenses from the birth of a child or an adoption.”
Startup businesses would also be allowed to write off more of their initial costs.