The Internal Revenue Service (IRS) has created a special landing page to share information with tax professionals concerning the effects of the Tax Cuts and Jobs Act of 2017. Click through for the latest press releases, publications, and IRS legal guidance on the changes made by the latest tax reform: www.irs.gov/newsroom/tax-reform
Efforts are already underway to reduce the slap many Californians are feeling from the $10,000 limit on federal deductions for state property or income taxes paid. Senators De Leon, Allen, and Hill have introduced SB 227, the "Protect California Taxpayers Act," which would effectively eliminate the cap on these federal deductions by providing a dollar-for-dollar tax credit against the state income tax liabilities of taxpayers who make a charitable donation to the California Excellence Fund. Donations would be used to fund California government programs typically funded through state tax revenues. Any credit that exceeds the taxpayer's income tax liability would be carried over to the next year, and would not be refundable.
President Trump and several key members of Congress have released their proposal for federal tax reform. Their main goals are to simplify the tax code, lower tax rates, increase the competitiveness of American businesses in the international arena, and repatriate dollars currently held in offshore accounts.
United States Senate Committee on Finance Chairman Orrin G. Hatch recently issued a request to experts and stakeholders for comments and recommendations to improve the federal tax system. The committee is specifically seeking ideas about how to provide tax relief to the middle class; how to strengthen businesses of all sizes through the tax system; how to encourage savings and investment and remove tax-related obstacles to such; and how to update the international tax system to stay competitive in the global economy.