the new tax cuts went into effect on january 1, 2018.
when did the new tax cuts go into effect?
january 1 , 2018
the individual and pass-through tax cuts fade over time and become net tax increases starting in 2027 while the corporate tax cuts are permanent. this enabled the senate to pass the bill with only 51 votes, without the need to defeat a filibuster, under the budget reconciliation process. the house passed the penultimate version of the bill on december 19, 2017, though for senate procedural reasons small changes were needed and a revote was held in the house. the senate passed the final version on december 20 in a 51–48 vote and that final version was passed by the house of representatives on that same day. the bill was signed into law by president donald trump on december 22, 2017. most of the changes introduced by the bill went into effect on january 1, 2018, and did not affect 2017 taxes.
tax cuts and jobs act of 2017
on october 30, 2007, the conservatives tabled an economic statement (similar to a mini-budget) and announced various tax cuts and exemptions. overall, the government proposed a total of $60 billion in tax cuts over five years, including $14 billion in corporate tax cuts by 2012 (or a drop of 33%), a 1% drop of the gst to 5%, an increase of the basic personal tax exemption to $10,100 per year by 2009. the stated goal of the corporate tax cuts was to set canadian corporate tax rates as the lowest in the g7, although this would require the provinces do matching tax cuts. the lowest personal tax rate will be reduced from 15.5% to 15%, effective january 1, 2007 back to the same level as when the conservatives were elected in 2006. economists said that with the large surpluses the federal government accumulated as well as high tax levels, there was another room for significant tax cuts.
economic policy of the stephen harper government