President Donald Trump signed the recently passed tax reform bill into law earlier today. The bill makes a number of changes to tax law. Two of the main changes include a reduction in the top individual tax rate. This rate is currently set at 39.6 percent and is reduced to 37 percent.
The second change involves the corporate tax rate. This rate is currently set at 35 percent and is reduced to 21 percent.
A number of companies are openly celebrating passage of this law.
Which businesses are celebrating? Sinclair Broadcast Group issued $1,000 bonuses to almost 9,000 employees in celebration of the law. The Hill reports the company recognized employees as the most valuable commodity in the company and wanted the bonus to act as a show of their appreciation and optimism towards a bright future.
Sinclair is not alone. The same piece also reports that AT&T decided to pay a one-time bonus of $1,000 to 200,000 employees with the passage of the bill.
Critics point to the bonuses as more than just a sign of appreciation. Both companies are in the midst of controversial merger deals.
Is there cause for concern? The passage of tax reform will have a negative impact as well. One of the most notable is the fact that tax preparation will become more difficult as financial experts will need to carefully review and apply the changes appropriately. A failure to do so could result in an audit.
Audits from the Internal Revenue Service (IRS) are serious matters that can be contested. As such, those who are the subject of an audit are wise to seek legal counsel.