The Most Important Tax Change in the New Reform Law
After months of negotiations, lawmakers in Washington finally succeeded in crafting a tax reform package that Republicans could agree on. New tax laws will take effect in 2018, and investors are excited about the huge decline in the corporate tax rate and its potential impact on business profits.
Yet for individual taxpayers, the most important change in the new tax law hasn't gotten a lot of attention. Amid wrangling over tax credits, higher standard deductions, and changes in deduction rules, the biggest change that upper-middle class and high-income taxpayers will see is the elimination of the marriage penalty. That provision by itself will save many married couples thousands in taxes by producing the biggest tax rate drop for individuals in the legislation.
Image source: Getty Images.
Source: Fool.com
