The much-anticipated tax reform bill sponsored by the Republican party was passed late December last year. However, according to the statutory wording; the GOP Tax plan was to come in effect on 1st January 2018.
Job creation
Dubbed the job creator, the GOP tax reform has lived up to the hype of creating more than 6 million job openings. This comes at a time when the unemployment levels in America were soaring. However, the creation of this jobs has proved to be futile in addressing the plight of Americans. Despite there being job opportunities, companies are struggling to find workers.
Employers blame this predicament on the lack of skilled workers, thereby necessitating training or enrollment in refresher courses. This is according to the National Federation of Independent Business. On the other hand, economists argue that the lack of skilled labor is not the problem, pinning the blame on the hiring company’s reluctance to offer attractive wages.
Increased wages
The GOP tax plan through the IRS income Tax withholding tables was designed to offer tax cuts across the board. Consequently, according to the congressional budget office estimates employers are set to withhold $10-15 billion less from workers as compared with the previous tax withholding tables. The intention behind the tax cuts is to increase the take-home pay for workers depending on their tax bracket. Additionally, the new GOP Tax plan introduces the married joint filter that takes two allowances and absorbs 5%.
Tax cuts
The GOP Tax plan was designed to give tax cuts to all income groups and is set to be a major win for the middle class with average tax cuts averaged at $1600 in 2018. These tax cuts have been elaborately encompassed through; standard deductions, child tax credit, and personal exemptions.
Tuition waivers and Employer tuition
The GOP tax plain retains the status quo of tuition waivers whereby colleges waive the cost of tuition for students who serve as teachers or do research. Employer tuition assistance remains non-taxable. This tax relief is designed to encourage employers to enroll their workers in continued learning programs that improve and expand their skill sets.
Healthcare Mandate Repealed
The previous tax dispensation placed a tax penalty for not having health insurance. The new GOP Tax plan has repealed this requirement. Working Americans can opt not to buy healthcare and not face any consequences.
Conclusions
Americans have for a long time born heavy tax deductions. The new GOP plan is a major relief to the majority of Americans. Additionally, the new tax plan has attempted to address the soaring numbers of the unemployment rate by creating jobs. However, it remains to be seen if the Republican-sponsored Tax plan is the cure to the ailing American economy.
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