What the Tax Code Reform Blueprint Holds

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 in: 

• $3.4 trillion in additional economic growth.
• 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.”

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