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Early Saturday morning at the U.S. capital of Washington, the Senate has passed the controversial Tax Cuts and Jobs Act, 51-49, which brings closer to become law before the year ends.
The Tax Cuts and Jobs Act slashes the corporate tax by 20%, repealing the individual mandate of the Affordable Care Act, which critics say will leave 13 million Americans uninsured by the next decade, and lowers tax rates for most Americans until 2026. When signed into law, it would dramatically increase economic growth, wages, and take-home pay and simplify the tax code.
There are some last minute changes to this highly controversial tax plan which involves altering the state and local tax deduction - repealing the income tax deduction and capping the property tax deduction at $10,000 (about over 500.000 Philippine Pesos in today's money) as well as 23% deduction to pass-through businesses that don't pay the corporate income tax.
SIDE NOTE: The highly controversial tax reform some say that it puts the burden of tax to the poor rather than the rich but a handful of experts say that such criticisms are off the mark as hardworking families will be the biggest winners of the Tax Cuts and Jobs act, says Grover Norquist, president of Americans for Tax Reform.
Could it be that America's Tax Cuts and Jobs Act has a similar undertone from the Philippines' Tax Reform for Acceleration and Inclusion? Maybe but unlike the PH's TRAIN, there isn't any excise tax on everyday objects like cars, fuel, and sweetened beverages (although some US states did). Still, this tax reform repeats the trickle-down economics during the Reagan years but with a modern twist to make it sound complicating for some.
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