CorrectappleFor Silicon Valley technology companies such as the company and Google parent Alphabet, the U.S. tax reform is a boon. They will therefore enjoy substantial tax cuts and have the opportunity to lower prices.interest rateGet billions of dollars back from overseas.
Contrary to previous warnings from relevant California officials, most workers in California and their families also enjoy tax breaks. California levies the highest personal income tax in the United States. Its governor Jerry Brown criticized the new tax law as "extremely evil."
Despite this, many companies in Silicon Valley have benefited greatly. Some tax experts said that employees, freelancers, and venture investors in start-ups will receive new tax benefits or retain existing tax incentives. Some middle- and high-income people in the core of the technology industry will also receive substantial tax cuts, but others Some people’s tax changes are very small.
For example, in a family of Silicon Valley homes that have real estates and have annual incomes of around US$250,000, the couples are affected by the new tax code by only a few hundred dollars, and for those who have annual incomes of US$150,000 and no children. Up to 3900 US dollars. Low-income people also enjoy tax-cut benefits, but the amount is small.
Critics of the new tax law have pointed out that personal income tax benefits will not last long and are expected to disappear after 2025. Even if low-income people receive some tax deductions, most of the benefits go to companies and the richest individuals.
The biggest winner in this tax reform may be the start-up employee with equity. First, start-ups can delay paying taxes by running rights related to stock options, and they will also have more opportunities to implement incentives for stock options.
Other beneficiaries include engineers, marketers, and contractors, who all enjoy nearly 20% tax deductions.
(Original title: The new tax reform plan is a Silicon Valley technology company or a big winner)