SOCIOL 182 Lecture Notes - Lecture 8: Alternative Minimum Tax, Patient Protection And Affordable Care Act
Document Summary
The article is about the house wanting to lower the federal corporate income-tax to a uniform 20%, from 35%. This bill would also provide modest, and potentially uneven, relief to middle-class taxpayers. It would expand the standard amount of deductible income, reduce the number of brackets from seven to four, and expand tax credits for children. Other changes would affect individual taxpayers differently: deductions of state and local taxes would be eliminated, the benefit for home-mortgage payments would be limited to home loans of ,000 (from usm previously), and medical-expense deductions would be cancelled. This will would benefit wealthy taxpayers because it will eliminate the alternative minimum tax which will prevent high earners from avoiding taxes through deductions. However, the downside of this is that it will affect small businesses since they don"t pay any corporate taxes, but see their income taxed at individual rates on their owner"s tax returns.
