Wednesday, 12 May 2021

New Tax Rates 2018

peterg By peterg | December 27, 2017 | United States

On December 20, 2017 US lawmakers agreed to lower US corporate and personal tax rates. Let’s take a look at the new personal and corporate tax rates to see how they may affect you.

First of all, the top corporate rates have dropped from 35% down to 21%.  

Why Lower Corporate Taxes?

In a word: COMPETITION. The US had one of the highest corporate tax rates in the world. This encouraged corporations to keep profits offshore, which is not good for the US economy. Here is a comparisons before the recent reduction:


Personal Tax Rates

The top personal tax rates have dropped from 39.6% down to 37%. 



Married Filing Jointly:

"Do I have to pay taxes again when I take it out?" 

Answer: "Don't take it out. Borrow it out." 


Want to buy real estate? Why not borrow the money from your corporation? In the above scenario, let's say you have $100,000 of income in the top bracket.

• If paying 52.3% in personal taxes (plus, or including state income taxes) you would only have $47,700 left. 

• If paying 21% corporate taxes you would have $79,000 to invest in real estate by borrowing this money from your corporation. 

• Thus, you have $31,300 more to invest. 

Related News

This website uses cookies to help us give you the best experience when you visit our website. By continuing to use this website, you consent to our use of these cookies. Read More Accept