Digital Auto Care Factbook 2019 - 81
Aftermarket Dynamics (Continued)
3. New Tax Changes tied to the PPACA
The Patient Protection and Affordable Care Act (PPACA), or "Obamacare", continue to be debated for its efficiency and effectiveness.
What many Americans do not realize is that there were numerous tax increases outlined in the act to pay for its implementation. Per
the chart above, the top Medicare tax rate went from 1.45 percent in 2013 to 2.35 percent in 2014. The top personal income tax
bracket went from 35 percent to 39.6 percent as a result of the law with top income payroll tax rates, capital gains tax rates, dividend
tax rates and estate tax rates all increasing dramatically as a result of the passage of the PPACA.
New Tax Changes Tied to the PPACA
Top Medicare Tax Rate
Top Personal Income Tax Bracket
Top Income Payroll Tax Rate
Capital Gains Tax Rate
Dividend Tax Rate
Estate Tax Rate
4. 2017 Average Corporate Tax Rates
Perhaps the most important debate that took place in Washington, D.C. in 2017, was the one surrounding U.S. competitiveness
and tax reform. The United States remained the largest and most competitive economy in the world, but as depicted above it had
a tremendous tax disadvantage relative to the rest of the world. Based on the above data provided by KPMG, one of the world's
foremost international tax firms, U.S. businesses were at a competitive income tax disadvantage by region, globally, and certainly
as a country. According to KPMG, the
2017 Corporate Tax Rates
U.S. at 40 percent, had the highest
average corporate income tax rate in
tax reform in the U.S. in 2017 will allow
American businesses to compete, thrive,
and grow 2017
in the ever-complex global
As a result of major tax reforms
top U.S. Federal corporate
income tax rate dropped from 35 percent
in 2017 to 21 percent in 2018 making the
United States highly competitive against
most of the industrialized world.
Source: This summary was prepared by Dr. Timothy G. Nash, Senior Vice President and Director of the McNair Center for the Advancement of Free Enterprise and
Entrepreneurship at Northwood University.
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