Tax reform expert and CEO of Engineered Tax Services (ETS), Julio Gonzalez, was featured on Tu Voz America to explain the benefits and changes of the new tax reform bill.
“Ultimately this is about lower income tax rates, so the biggest benefit to everyone is that we are all going to be paying less taxes, preserving wealth, be able to put away more in retirement, and with the growth of the economy and GDP, it will all get better,” said Mr. Gonzalez.
He walked viewers through the seven tax brackets, which are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. “For middle-class United States America, we will all be doing much better,” he said.
Mr. Gonzalez lobbied hard in 2017 to get tax reform done before the end of the year. He worked weekly in Washington D.C. with Congress and Senate to advise on the tax reform blueprint.
A Few Highlights of the Tax Reform Bill
Seven tax brackets and greater tax cuts
The bill leaves the current tax brackets in place, and focuses on cutting income tax.
Temporary individual tax changes and permanent tax changes for most businesses
The plan is set so that many of the individual tax changes will end after 2025.
Individual mandate tax penalty zeroed out
The plan that ends the tax penalty for not buying health insurance under the current law will expire, but not right away. The individual mandate will remain for 2018.
Changes in mortgage deductions
The current policy is that such a mortgage deduction is limited to no more than a $1,000,000 mortgage, but the plan now drops the upper limit to $750,000.