Hardware Retailing

MAR 2018

Hardware Retailing magazine is the pre-eminent how-to management magazine for small business owners and managers in the home improvement retailing industry.

Issue link: https://hardwareretailing.epubxp.com/i/945288

Contents of this Issue

Navigation

Page 103 of 114

March 2018 | HARDWARE RETAILING 97 The Impact of Tax Reform President Donald Trump recently concluded his one-year tax reform agenda with the Tax Cuts and Jobs Act of 2017. As a result of this legislation, small businesses can expect to see a dramatic change this year. The tax rate for small businesses (also called pass-throughs) has been capped at 25 percent. However, due to Senate budget rules, the tax cuts for individuals and pass-throughs expire after 2025. The lowered corporate tax rate, which dropped from 35 percent to 21 percent, is permanent. Moving forward, businesses are now able to deduct 100 percent of what they spend on capital investments. Businesses will be able to completely write off equipment that is purchased rather than it depreciating over an extended period of time. In the world of running a retail business, success often begins at home. Parts of the tax plan intend to help people retain more of their take-home pay. Here are a few highlights, by the numbers, that people can expect to see in 2018. Increase in a Zero Percent Tax Bracket • Standard deduction of $12,000 (single), $18,000 (single parents), and $24,000 (married) Renewal of Child Tax Credit • $2,000 credit per child under age 17 • Full credit is available to families with incomes up to $200,000 (single) and $400,000 (married) Repeal of Affordable Care Act Individual Mandate Fee • Although Americans are still required to purchase health insurance by law, the fine for not purchasing insurance was repealed as part of the tax plan. In 2017, the U.S. saw substantial economic growth. Throughout 2018, business owners, employees and consumers can expect to see increased returns on investments and more money in their wallets. Jeff Cardwell is the deputy director of communications for the Lincoln Roundtable, a conservative grassroots political organization. He interned in the Office of the Vice President for Vice President Mike Pence and is on the advisory council for the People Helping People Network, a nonprofit that assists Central Americans affected by natural disasters.

Articles in this issue

Archives of this issue

view archives of Hardware Retailing - MAR 2018