VANCOUVER, BC--(Marketwired - January 18, 2017) - US Tax Professionals specializes in cross-border taxation. Their latest company blog includes a synopsis of the President-elect's proposals for a reformed tax code. For more, go to: http://www.us-taxprofessionals.com/wordpress/
An earlier article discussed Trump's Gettysburg Address, which outlined his goals for his first 100 days in office. This article delved into specific details of tax code reform that he's mentioned at various points of the campaign. For example, Trump called for reducing the number of individual income tax rates; lowering the individual income tax rates for most taxpayers; lowering the corporate tax rate; creating new tax incentives; and repealing the Affordable Care Act (ACA) (including, presumably, the ACA's tax-related provisions).
The tax reforms the next POTUS specifically said he would pursue during the first 100 days in office include:
The Middle Class Tax Relief and Simplification Act
According to Trump, the legislation would provide middle class families with two children a 35% tax cut and lower the "business tax rate" from 35% to 15%.
Affordable Childcare and Eldercare Act
A proposal described by Trump during the campaign that would allow individuals to deduct childcare and eldercare from their taxes, incentivize employers to provide on-site childcare, and create tax-free savings accounts for children and elderly dependents.
Repeal and Replace the Affordable Care Act
A proposal made by Trump during the campaign to fully repeal the ACA.
American Energy & Infrastructure Act
A proposal described by Trump during the campaign that "leverages public-private partnerships, and private investments through tax incentives, to spur $1 trillion in infrastructure investment over ten years."
The President-elect also highlighted small businesses, the corporate tax rate, and some international proposals during his campaign, along with the simplification (and reduction) of taxes for small business.
Particularly for small businesses, Trump has proposed a doubling of IRS Code Sec. 179's small business expensing election to $1 million. He has also proposed the immediate deduction of all new investments in a business, which has also been endorsed by Congressional tax reform/simplification advocates.
The current corporate tax rate is 35%. During the campaign, President-elect Trump called for a reduction in the corporate tax rate to 15%. He proposed sharing that rate with owners of pass-through entities (sole proprietorships, partnerships and S corporations), but only for profits that are put back into the business.
Based on campaign materials, a one-time reduced rate would also be available to encourage companies to repatriate earnings of foreign subsidiaries that are held offshore. Many more details about these corporate and international tax proposals are expected.
The full article looks at many different aspects of Trump's tax plan, including individual income tax rates. While all these reforms are currently proposals and will most likely not impact the 2016 tax year, a good tax accountant must continually educate themselves on how tax reforms can impact both business and individuals.
As different proposals become law, there will be new obligations and conditions for working tax payers living in the US and abroad. Anyone who requires a US tax specialist on this side of the border is encouraged to call US Tax Professionals at (604) 949-1559.
About the Company
US Tax Professionals specialize cross borders tax services for American citizens living in Canada and Mexico. Founded in 2013, they specialize in individual taxation, taxation and accounting for business, and accounting and taxation of alternative investments, including private equity funds and hedge funds.
For more information, visit http://www.us-taxprofessionals.com/ or call (604) 949-1559.