Breaking Down the New Tax Cuts

This week on Top of Mind with Julie Rose, Professor Shobe was featured on the show to talk about the upcoming tax cut.

“The US House and Senate are closing in on a final deal to merge their respective tax cut plans and get something to President Trump’s desk for signature by next week. President Trump says it will be ‘a giant tax cut for Christmas.’ How giant? And for whom?” Professor Shobe writes in the area of tax law, with a focus on the interaction between U.S. federal, state, and local tax systems and on recent developments in corporate tax planning. She teaches classes in tax and contracts.

Professor Shobe states that the big winners from the tax cut will be corporations, highly paid executives, and tax accountants. This is because the top marginal tax rate will be reduced by two percent, which will be accompanied with tax benefits for big corporations. For the middle and lower classes, the standard deduction will double, incentivizing people to use that method to file taxes in lieu of itemizing. In addition, there are changes that will take place regarding the child tax credit. Professor Shobe added that she could see this tax cut taking effect rather quickly: in the next week or two.

To learn more about this upcoming tax break, be sure to listen in on Top of Mind with Julie Rose.


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