Accountants and tax analysts across the nation are spending their holidays dissecting provisions of a sweeping tax overhaul package President Donald Trump signed into law today.
The $1.5 trillion tax plan is the first major overhaul of the nation’s tax laws in 31 years and the president’s first legislative win.
The package, which Trump says will bring relief to middle-class families, includes generous tax cuts to corporations, a smaller cut to middle and lower-income Americans, a temporary increase in the standard deduction, and curtails state and local income tax breaks, among other things.
Despite jubilant celebrations from Trump, fellow Republican and corporations promising bonuses to employees after the bill’s passage, Democrats and critics of the tax overhaul say the cuts could add to the nation’s soaring debt and note that some of the provisions of the bill are set to expire in seven years.
For now, the winners and losers are still being sorted. Louisiana’s congressional delegation is counting the state among the winners. The plan, lawmakers say, includes provisions that directly benefit Louisianans. One allows the victims of the 2016 floods to amend their tax returns for that year to deduct losses associated with the flood.
Republican Bill Cassidy notes the same treatment is ‘being given to victims of hurricanes Harvey, Â Irma and Maria. He estimates the provision could bring about $500 million into the state. The bill also waives a 10% penalty for flood victims who withdrew money from their 401(k)’s to pay for flood damage, the Associated Press reports.
Another provision would increase offshore oil revenue for Gulf states through the Gulf of Mexico Energy Security Act. That could bring another $100 million to Louisiana, Cassidy says.
While some cheer the tax overhaul, others say it could have disastrous effects. LSU says a provision repealing charitable deductions for season ticket holders of many university sports programs could adversely impact college sports.
