Income Tax Reform: The Central Great Plains Before and After

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Authors

Martin, James A.

Issue Date

2022-08-01

Type

Working Paper

Language

en_US

Keywords

Tax Cuts and Jobs Act (TCJA) , Central Great Plains States , Tax law

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Abstract

The Tax Cuts and Jobs Act (TCJA) was passed into law in 2017. Positioned as a step toward tax simplification for individual taxpayers, the tax law changes largely began to take effect in 2018. The key elements of the act which targeted simplification were increases in the standard deduction and additional limitations on itemized deductions. The act also eliminated tax exemptions for dependents and lowered tax rates for most individuals. The impact on taxpayers was immediate. This paper analyzes direct impacts of the TCJA on Central Great Plains States (Kansas, Nebraska, North Dakota and South Dakota) taxpayers by comparing taxpayer attributes before and after the law's implementation. The paper also analyzes other tax attribute changes during the period for the Central Great Plains States region which were unrelated to the TCJA. The paper concludes with an analysis and comparison of tax attributes for the Central Great Plains States and the nation as a whole after the effective date of the TCJA.

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Washburn University. School of Business

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