The Congress has the blueprint of the
revised tax system ready. The
Tax Reform Act of 2014 refines and fixes the tax code to make it simpler
and stronger. Everyone is expecting the unexpected, as the tax system will
undergo a drastic change with the implementation of the changes.
“The Tax Reform Act of 2014 makes the code
simpler and fairer by:
•Providing a significantly more generous
standard deduction so that 95 percent of taxpayers will no longer be forced to
itemize their individual tax deductions.
•Reducing the size of the federal income
tax code by 25 per cent.
•Tackling fraud, abuse and mismanagement at
the IRS to protect hard-earned taxpayer dollars.
It will make our economy stronger resulting
• $3.4 trillion in additional economic
• 1.8 million new jobs.
• $1,300 per year more in the pockets of
middle-class American families.”
By revising the tax code, the Congress is
looking to create more jobs, save more money for middle-class families, and
stimulate more overall growth. The blueprint also contains a reduction in the
corporate tax rate to 25 percent.
The Tax Reform Act of 2014 states that
“this new, lower rate ends America’s dubious distinction of having the highest
corporate rate in the developed world. Reducing the corporate rate is just one
step toward making America a more attractive place to invest and hire. Coupled
with the significant rate reduction, the Tax Reform Act of 2014 also gives
certainty to our nation’s largest employers of American workers by providing:
• An improved, permanent R&D [research
and development] tax credit, finally giving American manufacturers the
certainty they need to compete against their foreign competition who have long
had permanent R&D incentives, and
• Repeal of the corporate AMT [Alternative
Minimum Tax], which raises taxes on American manufacturers during economic
downturns, when they can least afford it.”