Details of new tax reform

There have been several tax reforms in recent years, and it's difficult to provide a comprehensive overview of all the details. However, I can give you an update on some of the key changes and reforms that have been implemented or proposed in the United States and other countries.

United States:

  1. Tax Cuts and Jobs Act (2017): This law, signed by President Donald Trump, made significant changes to the US tax code, including:
    • Lowering the corporate tax rate from 35% to 21%.
    • Doubling the standard deduction for individuals and families.
    • Limiting the state and local tax (SALT) deduction to $10,000.
    • Repealing the individual mandate penalty under the Affordable Care Act.
    • Creating a new 20% deduction for qualified business income (QBI) from pass-through entities.
  2. 2020 Tax Relief Act: This law, signed by President Trump, made some changes to the 2017 tax law, including:
    • Increasing the QBI deduction from 20% to 25% for certain small businesses.
    • Allowing businesses to immediately write off the full cost of equipment and property investments.
    • Providing tax relief for victims of natural disasters.

Other Countries:

  1. Canada:
    • 2018 Federal Budget: Introduced changes to the tax system, including:
      • Increasing the basic personal amount (tax-free income) from $12,497 to $13,229.
      • Introducing a new tax on foreign-owned corporations.
      • Increasing the small business tax rate from 10.5% to 10.75%.
  2. United Kingdom:
    • 2017 Budget: Introduced changes to the tax system, including:
      • Increasing the personal allowance (tax-free income) from £11,000 to £12,000.
      • Introducing a new tax on digital services (such as online marketplaces and social media platforms).
      • Increasing the corporation tax rate from 20% to 21%.
  3. Australia:
    • 2018 Budget: Introduced changes to the tax system, including:
      • Increasing the personal income tax threshold from $37,000 to $41,000.
      • Introducing a new tax on multinational corporations.
      • Increasing the company tax rate from 30% to 30.5%.

Proposed Reforms:

  1. United States:
    • 2020 Democratic Presidential Candidates: Many Democratic presidential candidates have proposed significant tax reforms, including:
      • Increasing the corporate tax rate from 21% to 25% or 28%.
      • Implementing a wealth tax on individuals with net worth over $1 billion.
      • Increasing the top marginal income tax rate from 37% to 39.6%.
  2. Other Countries:
    • European Union: The EU has proposed a digital services tax (DST) to be implemented by member states, which would tax digital companies on their revenue generated in the EU.
    • China: China has proposed a new tax on foreign companies operating in the country, which would be based on their revenue generated in China.

Please note that tax laws and reforms are constantly evolving, and this information may not be comprehensive or up-to-date. It's always a good idea to consult with a tax professional or financial advisor for specific guidance on your individual situation.