Fiscal Policy on new Tax Plan

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Jbexnubyvp999

Economics

Description

Fiscal policy is a series of compromises. The Trump administration and congress passed a new tax law. In an essay form, describe the main components of the Senate Bill and the House bill (Generate a table) that led to the tax law and discuss the compromises that were made to reconcile the two bills. Additionally, evaluate the implications of the law on the following:

  • Firms
  • Not for profit organizations
  • Rich and poor individuals
  • Students
  • Economy including the deficit-should we worry about the deficit? Explain

What are the underlying assumptions of the law?

Should the bill have been passed into law? Explain.

How does the law align or not align with social justice?

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Explanation & Answer

Attached.

Running Head: FISCAL POLICY

1

Fiscal Policy on new Tax Plan

Student’s Name
Instructor’s Name
Course
Date

2

FISCAL POLICY
For the last 30 years, we have had a single tax law which had not been repealed. However, on

December 22, 2017, President Donald Trump signed into law the Senate final version of the Tax Cuts and
Jobs Acts of 2017. Before the final passage of the bill, however, there were major differences between the
House Bill and the Senate Bill. Major compromises were however done in form of a fiscal policy before
the bills were signed into law. The following table shows some of the major components the House and
Senate Bills that led to the reconciliation of the Tax Law.
Provision

House Bill

Senate Bill

Individual Tax

The bubble rate and income tax rate was

The top marginal tax range was to be kept at

Rates

to be maintained at an all-time high of up

38.5% under seven taxation brackets. 38.5% for

to 39.6% under four taxation brackets of;

income above $500,000, 35% for income above

39.6% for anyone with an income above

$200,000, 32% for income above $160,000,

$500,000, 35% for income above

24% for income above, 70,000, 22% for income

$200,000, 25% for income above

above $38,700, 12% for income above $9,525

$45,000, and 12% for income below

and 10% for income below $9.525.

$45,000.
Family and

The tax for child’s credit to increase to

The tax for child’s credit to increase to $2,000

Child Tax

$1,600 and filter starting from $230,000

a...


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I was having a hard time with this subject, and this was a great help.

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