You’ve likely heard the good news: the recently-passed Tax Cuts and Jobs Act simplifies our tax code so much, Americans will be able to file their taxes using something as easy as a postcard.
But how does the bill simplify our tax code, exactly?
As NPR explains:
“I think for the vast majority of Americans their returns will be much, much simpler” under the GOP plan, says Nicole Kaeding, an economist with the Tax Foundation in Washington, D.C.
Republicans have proposed reducing the number of tax brackets for individuals to four from the current seven. That alone isn’t necessarily that much of a simplification, Kaeding says. “It’s more that we’re eliminating a lot of the deductions and credits available” that makes it more likely a tax return can be squeezed onto a postcard, she says.
But how can we afford to simplify the tax code? That’s all thanks to the increased standard deduction.
Simpler, fairer taxes putting more money back into our pockets; how could we not be thankful for that?