What Will President Trump's Policies Mean for Your Taxes?
Though there is no doubt that President Trump's rise to power has fueled a wide range of strong reactions, part of what brought him into office was his promises to act on tax issues. But now that he's been in office for the better part of the year, what result will his policies have on your tax return next April? Here's a quick overview to help keep you apprised of the latest changes expected in business and personal taxes.
Though original campaign promises suggested a planned corporate tax cut from 35% to 15%, news reports from July suggested a compromise settling between 20% and 25%. This would still represent a strong cut in total corporate taxes, and seems to be agreed upon between a wide number of senior advisors, business executives and government officials. However, the Trump administration has still been maintaining its goal of reaching a 15% corporate income tax rate. There's also rumors of this tax cut being extended to other business owners, including freelancers, sole proprietorships, pass-through entities and small businesses that are not protected by the umbrella of a corporation.
With the administration seeing its lowest point with the Charlottesville riots, the intervening weeks have boosted the president's popularity to new highs. The recent changes in support and willingness to compromise between President Trump and Congress is showing new potential opportunities in making financial changes in our country.
Among other changes suggested by the administration is an overall simplification of the tax code. This includes a reduction of the seven current tax brackets to four. Changes are also on the books for reducing capital gains taxes and a proposal that the estate tax be removed, making it easier for families to pass assets to the next generation.
Whether you're a supporter in favor of or protester against President Trump, in the words of founding father Benjamin Franklin, "In this world nothing can be said to be certain, except death and taxes." With these rapidly evolving changes in federal tax policy, it's important to make sure you have the best possible advice for tax planning. At AccountRely, we've spent years helping our clients find the best tax options for their needs. Please contact us today with any questions or to schedule a consultation with one of our accounting professionals.