![]() Inflation-adjusted gross domestic product has risen 153% since 1980, while inflation-adjusted corporate tax receipts were 115% higher in fiscal 2015 than in fiscal 1980, according to the Bureau of Economic Analysis. Nor have corporate tax receipts kept pace with the overall growth of the U.S. Back in the 1950s, corporate income tax generated between a quarter and a third of federal revenues (though payroll taxes have grown considerably over that period). In fiscal 2015, the federal government collected $343.8 billion from corporate income taxes, or 10.6% of its total revenue. It’s true that corporations are funding a smaller share of overall government operations than they used to. But in a separate 2015 survey by the Center, some six-in-ten Americans said they were bothered a lot by the feeling that “some wealthy people” and “some corporations” don’t pay their fair share. Just over half (54%) of Americans surveyed in fall by Pew Research Center said they pay about the right amount in taxes considering what they get from the federal government, versus 40% who said they pay more than their fair share. It’s what other people pay, or don’t pay, that bothers them. Click to learn how you can cash-in from this enormous boom.Tax-deadline season isn’t many people’s favorite time of the year, but most Americans are OK with the amount of tax they pay. The states that have legalized marijuana use are already amassing huge tax revenues from its sales. You can find a comparison of the best tax prep programs here. This end-of-year change to the 2018 tax brackets shouldn't affect 2017 returns. Medical expenses in 20 are deductible to the extent the exceed 7.5% of income (down from 10%). ![]() The limit, however, has come down from loans up to $1 million to loans up to $750,000. Interest on mortgages for primary and secondary residences is still deductible. This concession attempts to address the uproar from states that levy big taxes on their citizens. State and local taxes can still be itemized, but they are now capped at $10,000. Several key changes are coming for itemized deductions. Further, it doesn't start to phase out until $400,000 in income for couples and $200,000 for singles. Under the new law, the credit doubles to $2,000, $1,400 of which is a refundable tax credit. It currently sits at $1,000 and starts to phase out at $110,000 in income for couples and $75,000 in income for everybody else. The good news the child tax credit gets a big boost. The personal exemption, currently at $4,1, would be repealed. For single filers it jumps from $6,500 to $12,000. The standard deduction in 2018 as the law currently exists is $13,000 for a couple filing jointly. The new tax rules also make big changes to the standard deduction and exemptions. The bottom rate remains at 10%, but it covers twice the amount of income compared to the previous brackets. The top rate will fall from 39.6% to 37%. For individuals, these lower rates are scheduled to expire in 2025 unless Congress extends them. The number of brackets remained the same at seven.
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