An accounting graduate of California State University, Hayward, Keith Towns has led Emerge Financial Group, with offices in Suisun City and Oakland, California, for nearly 30 years. In his work, Keith Towns draws upon an extensive knowledge of changing state and federal tax laws.
Accountants around the country are studying the new tax law passed by Congress and signed by President Donald Trump in 2017. One of the largest tax overhaul bills in recent history, the Tax Cut and Jobs Act of 2017 makes numerous changes to the U.S. tax code, with implications for almost every taxpayer in America.
The most fundamental changes to the tax code include a change in tax brackets. While the previous brackets included tax rates ranging from 10 percent to 39.6 percent depending on income, the new brackets keep the lowest rate of 10 percent but reduce the highest bracket to 37 percent. Additionally, the income threshold for the top bracket has been increased from $480,051 to $600,001. This change means higher-income Americans can make about 25 percent more money before being taxed at the highest rate.
The other major change that will affect most Americans are adjustments to the standard deduction and personal exemptions. While the standard deduction has been nearly doubled for both single and married filers, personal exemptions have been eliminated completely. Some analysts suggest that while single filers and married couples without children will benefit from these changes, the loss of personal exemptions will hurt families who rely on personal exemptions to lower their tax bill.
