While conversations about taxes in the United States go all the way back to the Boston Tea Party, the last 50 years have seen an abundance of tax reforms from both political parties. And since the last year has seen two of the most substantial tax changes in modern history, we’ve compiled some information and tools to help you understand the implications of these changes on you and your business.
Scroll below to see the tax reform changes over the past 50 years
Throughout these years, tax rates were higher than we’re used to now. In fact, the highest income tax rate in 1980 was 70 percent.
The Tax Reform Act of 1986 simplified the tax code, reduced tax brackets and lowered income taxes.
The Economic Growth and Tax Relief Act provided for increased tax-deductible contributions to IRAs, a higher child tax credit and reduced tax rates, among other provisions.
A combination of the country’s fiscal cliff, tax laws and the Affordable Care Act increased taxes. The maximum federal income tax rate was 43.4 percent.
The Tax Cuts and Jobs Act nearly doubled the standard deduction amount while placing limitations on some itemized deductions.
Impacting online retailers, a new Supreme Court ruling determined that states can require online merchants to collect sales taxes even if the merchant doesn’t have a physical presence there.
At 1-800Accountant, we are dedicated to helping your company succeed. Our online resources offer information on the ins and outs of being a business owner. And, don’t forget our team is always just a phone call away.