Follow Adam Linkedin Twitter Facebook
Email Adam Email
Financial
Dec 15, 2016

Potential Tax Changes Under Our Next President

Sponsored Content provided by Adam Shay - Managing Partner, Adam Shay CPA, PLLC

Our most recent election cycle was brutal and challenging. We now know that Donald J. Trump will be the 45th President of the United State of America.

Given that, it makes sense to look at his potential changes to the government. In this article, I am going to focus on taxes.

Here is a glimpse of some of the changes that Trump has proposed during his campaign:

  • Trump has promised changes to the Affordable Care Act but how far and how much remains to be seen. This could impact the tax-related subsidies and credits. For high earners, he intends to revoke the 3.8 percent investment surtax and 0.9 percent additional high-earner Medicare tax implemented to support the Affordable Care Act.
  • He has promised to simplify the individual U.S. tax code to three tax rates. The top income tax bracket would be 33% at start at taxable income of $225,00 for a married couple. The two brackets below it would fall at 12 and 25 percent, respectively. While this has been pitched as a middle-class tax cut, the biggest benefit will go to millionaires.
  • He has proposed almost tripling the standard deduction. Expect the real estate industry to fight this one hard, as it will essentially eliminate the tax benefit of owning a home for the majority of circumstances. It will also make charitable donations less attractive.
  • He would remove personal tax exemptions (to help finance the preceding point), which would remove some of the tax benefits of having children. He will, however, implement above the line deduction system for child and dependent care expenses to replace the child care credits and implement an additional credit for lower earners with child care and dependent expenses.
  • He has promised to eliminate the Alternative Minimum Tax (AMT) at both the individual and corporate level.
  • Trump has promised to lower the corporate tax rate and the tax rate of flow-through business income (think S corporations and partnerships) to 15 percent.
  • Trump has promised to repeal the estate tax. If this happens, expect a flurry of transfer of assets between generations while the repeal is in place.
  • He has promised substantial credits to encourage private investment in infrastructure projects.
  • He would eliminate the carried interest loophole.This loophole allows investment managers to have all of their income taxed at favorable long-term capital gains rates.
  • Trump has promised to bring U.S. foreign corporate dollars back from overseas tax havens at a flat 10 percent tax rate.
Anyone worth a grain of salt knows that campaign promises and actual implementation are two different things. That being said, given that we’ll have a Republican president and Republican controlled Congress, the odds are more in Trumps favor. We’ll see how some of the math works on his proposals and what is feasible to implement.

Adam Shay, CPA (N.C. License Number 35961), MBA, is managing partner of Adam Shay CPA, PLLC. He focuses on minimizing taxes and improving the financial results of entrepreneurs, and is actively involved in supporting the Wilmington entrepreneurial and startup community. For more information, visit http://www.wilmingtontaxesandaccounting.com/ or email him at [email protected]. He can also be reached by phone at (910) 256-3456.

Other Posts from Adam Shay

Adam shay blk 52015121549
Ico insights

INSIGHTS

SPONSORS' CONTENT
Jasonpathfinder3

Where to Live in Retirement Part 1: Considerations

Jason Wheeler - Pathfinder Wealth Consulting
Lyleheadshot2017 1251720228

Measuring Nonprofit ROI

JC Lyle - Wilmington Area Rebuilding Ministry
Chris coudriet

County Zoning Gets Full Revamp After 50 Years

Chris Coudriet - New Hanover County Government

Trending News

In Wrightsville Beach, Office Building Sells For $1.3M

Cece Nunn - Aug 19, 2019

ILM Seeks Proposals For Another Aviation Services Provider

Christina Haley O'Neal - Aug 19, 2019

Pawsome News: New Pet Daycare And Retailers Opening In Wilmington

Johanna Cano - Aug 20, 2019

Public Forums Draw Questions About NHRMC's Future

Vicky Janowski - Aug 20, 2019

WHQR Announces New Board Members

Christina Haley O'Neal - Aug 20, 2019

In The Current Issue

Local Distillery Makes A Splash

With Brooke Bloomquist’s background in marketing and special events and her father’s naval career and business prowess, their masterminding...


Advocating For Realtors

Anne Gardner, the new CEO of Cape Fear Realtors, talks about her role leading one of the region's largest trade associations....


A New Leaf: CBD, Hemp Products Lead To New Businesses

Last year's Farm Bill opened the door for hemp farming, producing and selling, and that's translated into numerous new businesses nationwide...

Book On Business

The 2019 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

WILMA's Leadership Accelerator
Power Breakfast - The H Word (June 13, 2019)
2019 WilmingtonBiz Expo Keynote Lunch - CEO, nCino, Pierre Naude`