Tax Reform: Then & Now
While conversations about taxes in the United States go all the way back to the Boston Tea Party, the last 50 years have seen an abundance of tax reforms from both political parties. And since the last year has seen two of the most substantial tax changes in modern history, we’ve compiled some information and tools to help you understand the implications of these changes on you and your business.
Tax Reform: Then & Now
While conversations about taxes in the United States go all the way back to the Boston Tea Party, the last 50 years have seen an abundance of tax reforms from both political parties. And since the last year has seen two of the most substantial tax changes in modern history, we’ve compiled some information and tools to help you understand the implications of these changes on you and your business.
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Bookkeeping 101: What is Double-Entry?
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How to Pick the Right Entity for Your Business
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Higher Tax Rates 1960 - 1980
Throughout these years, tax rates were higher than we’re used to now. In fact, the highest income tax rate in 1980 was 70 percent.
Tax Reform Act of 1986
The Tax Reform Act of 1986 simplified the tax code, reduced tax brackets and lowered income taxes.
Economic Growth & Tax Relief Act 2001
The Economic Growth and Tax Relief Act provided for increased tax-deductible contributions to IRAs, a higher child tax credit and reduced tax rates, among other provisions.
Increased Taxes 2013
A combination of the country’s fiscal cliff, tax laws and the Affordable Care Act increased taxes. The maximum federal income tax rate was 43.4 percent.
Doubled the Standard Deduction Amount 2017
The Tax Cuts and Jobs Act nearly doubled the standard deduction amount while placing limitations on some itemized deductions.
Sales Taxes 2018
Impacting online retailers, a new Supreme Court ruling determined that states can require online merchants to collect sales taxes even if the merchant doesn’t have a physical presence there.