Review: 2018 Tax Reforms: And What It Really Means for You by C D Leonard

2018 Tax Reforms: And What It Really Means for You, C D Leonard’s examination of the new tax laws of 2018, is a well-organized, accessible analysis of a generally complex subject.

In this comprehensive overview, Leonard aims to clarify both the facts and the myths regarding the new US legislation known as the Tax Cut and Jobs Act (TCJA) enacted this year by the Trump administration. Because the details of the TCJA can be daunting to a layperson, Leonard endeavors here to try to explain the basics of the new legislation to those who will be affected by it.

The book is arranged in an easy-to-follow manner that facilitates education and assistance for ordinary Americans curious about the new law. Leonard has created two corporate entities to demonstrate differences in the new laws affecting businesses – Jack and Jill (J&J) Enterprises and Andreas Coffee Shop (ACS). There are two personal entities as well – Jack and Jill (a married couple) and Andreas (single) – whose tax situations illustrate how individuals may be affected by TCJA.

While the book is non-partisan, the book may not please opponents of the tax bill, as Leonard lays out potential advantages to the legislation, and this is where his debunking of “myths” comes into play. In a chapter on Corporate Tax, for example, we see that J&J Enterprises will pay considerably less in corporate taxes under TCJA, leaving room for new investment. ACS, a smaller business earning less, would pay $50 more in taxes but would have access to more business improvement incentives.

Critics argue that this corporate tax cut will increase growth of the federal deficit by as much as 67%. The counter to that argument is that the overall economy would improve in a way that would “narrow or negate” deficit growth. Leonard presents both sides, showing technically what people would pay without emphasizing the “correctness” of this approach, so readers can make up their minds as to the actual, practical benefits for their particular case.

Leonard has constructed this manual so that various wrinkles in the new tax law can be selected, explored and comprehended, with advice for taking advantage of the legislation, which can include opening or increasing a savings account for children’s college or making tax-exempt gifts to heirs to decrease later estate taxes. It is clear that the author is knowledgeable and knows how to arrange factual material in a way that is interesting, simple and readily accessible for an average reader. By showing what the law entails, readers can see what the new changes will mean for them.

The one notable flaw in this guide is lack of author information. It would be helpful, and in fact supportive of the materials offered, to know more about Leonard and his professional expertise in tax law and general economics. Additionally, the cover unfortunately displays a misplaced “?” in the title, which does not display in listings at bookstores. These issues aside, Leonard clearly knows his subject, and the book will be helpful to anyone looking to navigate this difficult terrain.

Taking an undeniably thorny subject with a myriad of political, personal, and financial implications and making it readable and utilizable is a great accomplishment, and Leonard has succeeded in that task with this treatise on the TCJA.