Recent Tax Changes 2024

The recent changes in U.S. tax legislation for 2024 include several key initiatives and adjustments aimed at providing tax relief, promoting fairness, and addressing specific economic challenges:

1. Tax Relief for American Families and Workers Act of 2024: This Act focuses on providing tax relief and support to American families and workers. It includes provisions such as enhanced Child Tax Credit, business incentives, disaster tax relief, and efforts to alleviate the shortage of affordable housing.

2. Tax Excessive CEO Pay Act: This proposal targets income inequality by suggesting an increase in the corporate tax rate for companies with high CEO-to-worker pay ratios. It introduces a tiered system where the tax rate increases based on the disparity between CEO pay and the median worker's pay.

3. Death Tax Repeal Act: Proposed by Representative Randy Feenstra, this act aims to eliminate estate and generation-skipping transfer taxes, which currently apply to estates worth at least $13.61 million, with rates ranging from 18% to 40%.

4. No Capital Gains Allowance for American Adversaries Act: This proposal seeks to amend the Internal Revenue Code to treat certain gains and dividends from countries of concern as ordinary income, specifically targeting gains from transactions involving entities in countries such as China, Russia, Belarus, and Iran.

5. Tax Inflation Adjustments for Tax Year 2024: The IRS has announced annual inflation adjustments for more than 60 tax provisions, including tax rate schedules and other tax changes. These adjustments are designed to reflect the economic environment and maintain fairness in the tax system.

6. Restoration and Expansion of Certain Tax Credits: The proposed legislation aims to revive and expand critical tax credits, such as the Child Tax Credit and the Low-Income Housing Tax Credit, in addition to addressing components of the Tax Cuts and Jobs Act (TCJA) that had expired.

These legislative changes and proposals represent a combination of measures intended to stimulate economic growth, provide relief to those impacted by natural disasters, and address social and economic disparities. The ultimate impact of these changes will hinge on their final passage and the specifics of their implementation, which are still subject to ongoing discussion and negotiation in Congress.

This content is for informational purposes only and is not intended as financial, accounting, or legal advice. Readers should consult with professional advisors for specific guidance tailored to their needs.