How Does the Tax Cuts and Jobs Act Impact You?

The Tax Cuts and Jobs Act (H.R. 1) has been approved by Congress and signed by President Trump. After a last-minute procedural glitch that required the Senate to vote first on the final bill, the most sweeping change to the U.S. tax code in decades cleared the Senate, 51 to 48, in the early morning hours of December 20, followed by House approval, 224 to 201, later the same day. President Trump signed the bill into law at the White House on December 22, 2017.

H.R. 1, as approved by Congress, impacts virtually every individual and business on a level not seen in over 30 years. As with any tax bill, however, there will be “winners” and “losers.” This historic bill calls for lowering the individual and corporate tax rates, repealing countless tax credits and deductions, enhancing the child tax credit, boosting business expensing, and more. The bill also impacts the Affordable Care Act (ACA), effectively repealing the individual shared responsibility requirement. Most provisions are effective starting in 2018.

This article outlines all of the details on the new law.

Index PerformanceDec.4QYTD
US Stock (Russell 3000)1.00%6.34%21.13%
Foreign Stock (FTSE AW ex US)2.35%5.32%27.47%
Total US Bond Mkt. (BarCap Aggregate)0.46%0.39%3.54%
Short US Gov. Bonds (BarCap Gov 1-5 Yr)-0.01%-0.40%0.69%
Municipal Bonds (BarCap 1-10yr Muni)0.64%-0.22%3.49%
Cash (ICE ML 3Month T-Bill)0.11%0.28%0.86%

Photo courtesy Eli Christman.

Raffa Wealth Management is an independent investment advisor providing nonprofit organizations, high net-worth investors, and qualified retirement plans with a full range of investment consulting services. We were established to fill the need for transparency, clarity, and vision in the professional management of investment assets. Visit us at www.raffawealth.com

There is no guarantee that any investment strategy, including those described here, will be successful. Any investment or investment strategy can lose money. Past performance does not guarantee or predict future results. You should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Raffa Wealth Management, LLC. This information was gathered from reliable sources but we cannot guarantee accuracy. Indexes do not reflect the fees associated with actual investments and such fees would reduce the performance illustrated.
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