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    How tax reform expert save your money?

    President Trump brought about significant changes in the new tax reform act. It was originally passed
    during the year 1986, and the most recent one passed on Jan 1st last year. He has reduced the burden
    of corporate taxes as it levied a reduced tax rate of 21% instead of 35%. This bold step of tax cut invited
    criticisms about Trump's initiative. Along with reducing the tax burden, this law has wiped off the
    corporate tax on overseas profit, in entirety. These are the two agendas in his progressive tax reform
    that imposes a lesser burden on people in the lower-income strata.
    Impact of tax reforms law: 
    The latest Tax reform 2.0 would improve GDP by 2.2 percent and would create additional jobs available
    to the citizens. The tax reform, says that the provisions of the act will take effect immediately and would
    be permanent. Initially, it was to be in effect until 2025. The growth curve anticipates that in spite of a
    reduction in the federal revenue of $112 billion, it will help to improve the size of the economy on the
    whole. The main aim of recent tax reform is to benefit the middle-income group that would help their
    business flourish along with sending in more money to the federal reserve.
    How can a tax reform expert help the business?
    • Carve out a clear tax plan for business: The present-day Taxation law is complicated and
    bizarre. Understanding Tax law and filing tax returns is never an easy task. A tax reform expert
    can only guide you through the current changes and help you save your money. A CEO of a company
    should appoint an expert in Tax laws who can understand the impact of the radical changes in the
    Tax Cuts and Jobs Act. They can surely swim along the rough waters that would pave a way for
    reinvestment to take advantage of the tax plan to reap better profits. They will make a clear
    cut plan for further development based on your company's goals.
    • Explore ways to save money:  There is uncertainty due to the introduction of new tax reform.
    A tax reform expert will help the business owners understand the various provisions of the Federal tax
    reform law. They bring up the opportunities to save money by paying a lesser amount as tax.
    The Tax Cut and Jobs Act have stopped individual deductions, but doubled the rate of standard
    deductions. If the couple files an income tax statement, they can claim a deduction of 24,000 dollars,
    according to the provision of the new reform act. It was 12,000, previously.
    • Universal retirement savings account: Another area where these tax reform experts help their
    clients is about retirement savings. Some companies don't have provisions for retirement savings in their
    policy. In such cases, a tax reform expert plays a big role by removing the doubts regarding the taxation
    of retirement accounts. At present, there are so many retirement accounts that have various tax
    provisions applicable to the account holders. The lawmakers have an idea to introduce a universal
    retirement savings account which can benefit those who don't have access to such accounts in their
    • Help to understand exact provisions to save tax: The old tax reform act is kind towards young
    entrepreneurs starting up a business. The tax reform experts can help them to take advantage of the
    provisions that benefit them. Sometimes, it takes a long time to start-up businesses to show up profit. 

    The old tax reform provisions allowed the new loss-making businesses to tide over the turmoil.
    It allowed companies to carry forward the current year losses to next year and pay tax only for a
    reduced amount. Almost 80% of the losses can be deducted from the present year's profit and pay tax
    only for 20% of the remaining amount. As a result, many investors were willing to park their money in
    new venture capital projects. The loss deduction laws help the venture capitalists to grow beyond the
    losses they make during the nascent stages of the business.
    The introduction of the new tax reform bill retards the ability of the startups to recoup themselves after
    long years of loss. Now there is no provision to reduce the taxable income by 80% and pay taxes for
    the rest of 20% of the present year income. A tax reform expert can only help them to understand that
    they can only benefit from the tax cut of 15% in the corporate income tax rate.
    Take Away
    The present tax reform act introduced on 1st January 2018 is complex and needs a better understanding to benefit out of it. A wise CEO should be able to predict the repercussions of the tax laws on corporate and get a talented tax reform expert to make use of the favorable provision of the new tax reform bill, effectively.

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