What Should American Business Owners and the Nation's Top Income Earners Expect in a Trump Tax Plan?
Some tax changes are going to take place in the coming years. Some will be significant but others not so much. With less than one month remaining to actually do something actionable about 2016 savings, the good news is that there is no immediate effect from the election and you can put your hidden money (like tax savings) to work for your business in 2017.
Vero Beach, FL, November 14, 2016 (Newswire.com) - Many, if not most, Americans have no idea what the tax implications from this year’s presidential election are for their business’ bottom line” say the Tax Attorneys and CPAs from Tax Saving Professionals, a leading financial, tax consulting, tax strategy and Family Office firm. For the next four years, there will be no Congressional gridlock.
Because of this year’s results, our nation will have a Republican President, and Republican control of both the House and Senate; as well as Republican Speaker of the House, Paul Ryan. Ryan himself is considered by many as a tax buff and maybe an ally as well as an advocate for tax reform with Trump. What does all of this mean;? It means a move to a simpler, fair, manageable system free of loopholes and special interests? Well, yes and no. Since the Trump Plan addresses different scenarios, it is clear as mud. This is what is proposed:
High Income – Reduce the top bracket from 39.6 to 33%, with a $200,000 cap on deductions.
Middle Income – Take the 7 tax brackets down to 3 at 12%, 25%, and 33%, with an increase in the standard deduction up to $30,000 for joint filers and $15,000 for individuals.
Corporate Tax – Lower the rate from 35% to 15% and potentially (not defined) allow pass through income from S-corps to be taxed at 15%.
Hedge fund managers – Potential adjustment or elimination of the carried interest policy, moving these funds from the preferred 15% rate to ordinary income rates, or keeping the 15% rate and layering an additional tax for capital gains and dividends.
Estate Tax – Only affects estates over $5.45 million for individuals / $10.9 million for joint filers - it could be eliminated.
International Companies – One-time repatriation of income at 10% rate.
“If you are a business owner, a high net worth individual, or a high-income earner, and you haven’t been paying attention to what is going on with the new tax law proposals, you are going to be shocked or surprised. However, the bottom line is that 2016, and most likely 2017, taxes will not be affected and TSP clients will still be lowering their taxes by half, regularly.”
“If you are a business owner or high-income taxpayer now facing tax rates in excess of 50 %, you are still seeing the effect of a combination of federal tax increase since 2013.”
Among a host of others, here are just a few new startling tax facts that have impacted Americans:
· Top marginal rate of 39.6%, an increase from 35 %
· 20% tax on long-term capital gains and dividends; an increase from 15 %
· 3.8% tax on investment income; an entirely new tax
Where you are located in the country also impacts your new tax rates and tax structure. In California, the “new” top marginal tax rate is 13.3 % on income exceeding $1 million, you still can change that in the next 40 days of 2016.
High-Net Worth Individuals have been Hit Hard
High net-worth and “wealthy” individuals have felt more than a little pinch to their pocketbooks, more like the big arm of government swooping in to help themselves to a huge handful of cash from their bottom line, with little ways to offset it.
· For example, the rate on long-term gains and qualified dividends can be up to 25%. That’s a 67% increase since 2012.
· Moreover, the rate on other investment income such as royalties, interest and rents can exceed 43%.
Good News, Bad News
The good news is, tax reduction services may be your best investment in 2016 as the Standard & Poor’s 500 Index is down 1.94 % through November. The bad news however, is if you don’t get in before December 31st, you’ve missed the best investment of the year by reducing your taxes in half. This is real money, just try the Tax Saving Pros tax saving and investment calculator app, “Tax Crusher”, to see what they can do for you. http://taxsavingpros.com/calculator/
Tax Saving Professionals regularly helps business owners and high-income earners with a no-cost tax review after you run the Tax Crusher App. Take this opportunity with less than one month remaining this year to learn about how they can help you pay less taxes, keep more of your money, and use it in other strategies that can help your business this year.
About Tax Saving Professionals
Since the 1990’s, TSP (www.TaxSavingProfessionals.com) has helped clients nationally save more than half-a-billion dollars in taxes. The average American pays 31% in taxes, the average TSP client pays a little more than 15% in taxes.
The majority of tax professionals regularly use between 15 and 20 tax strategies to help clients reduce their taxes. TSP utilizes more than 400 rarely used, misunderstood, or simply unknown tax strategies by the majority of tax professionals. These strategies were developed by TSP along with a team of tax lawyers and CPAs, including a former IRS Revenue Officer and a former prosecutor with the Department of Justice.
TSP achieves this through proper record keeping and documentation, combined with diligent compliance, for provisions in the tax code recommended by the company’s team of tax professionals -- -- CPA’s, Attorneys, Enrolled agents and in house Investment Advisors and Insurance Agents as well as subject matter experts in specific tax strategies.
Source: Tax Saving Professionals