Abstract

Some of the most controversial discussions that are often brought up are derived from the topic of tax. Taxes are arguably the most important and impactful parts of many people’s lives. Considering this, people are always curious when it comes to taxes and how changes in society, economics and government effect their personal lives. In 2017 Congress passed the largest tax overhaul in over 30 years, making it very clear that most households will be affected in one way or another. These changes are ones that people should take awareness of as they all directly or indirectly effect the lives of every American. The changes that were most prolific were derived from the following topics: lower tax rates, standard deductions, itemized deductions, affordable care act tax penalty, estate tax exemption, alternative minimum tax, child and elder care credits, corporate income tax rate, pass-through deduction and bonus depreciation. This paper includes a review as to why Congress decided to allow each change, what their intent was for the change, and the effect it had in the first year. In addition, I will try to advise the taxpayer how to adjust to the change and analyze the behavioral changes of taxpayers based on the new law. Once these are all discussed, I found it to be important to share real-life situations to allow readers to try and see how these changes may play out in their own lives and the lives of others. Lastly, I will go on to interview two practicing CPAs who had recently finished up their first tax season with the new law in play allowing the reader to see the changes from a professional’s perspective. Ultimately, the new law has caused significant changes in taxpayer behavior and has had noticeable effects on the economy and taxpayers as a whole.

Keywords

Tax cuts, Jobs Act, New tax roles, Trump's tax law, Tax reform

Document Type

Thesis

Year of Completion

2019

Advisor

Jeffrey Hoops

Academic Department

Accounting

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