This is one of the easiest areas to raise taxes
West Orange, NJ (PRWEB) September 7, 2008
With both parties' choices confirmed for the November 2008 election, voters are turning their attention to the economic policies of Senators Barack Obama and John McCain.
Based on the candidates' officially published platforms, partners and corporate tax planners, Nelson Couto and Nick Magone at Couto, DeFranco & Magone evaluated Obama and McCain's stands on some issues of interest to NJ homeowners and business owners.
Says Nelson Couto, "The proposed elimination of state and local taxes under Obama's proposal would be significant for those of us in the Northeast, especially in NJ where we are hard hit with real estate taxes."
As for McCain's platform, Couto feels that the Republican's proposed estate tax exemption of $10 million with a rate of 15% is enticing but unlikely. "This is one of the easiest areas to raise taxes," according to Couto. "After all, I have never seen a beneficiary cry over the net after tax estate. I believe it is more likely a compromise will occur, and we'll see a proposal similar to that of Obama's proposed $3.5 million and a 45% rate."
For U.S. business owners, Nick Magone points to a much-talked-about provision of Obama's proposed tax reform -- the raising of social security taxes.
"If this passes," says Magone, "I believe we'll see business owners opt for a corporate form of business as opposed to the more popular LLC or partnership." Why? "An active manager's income is subject to social security tax in an LLC or partnership, while it is excluded in S and C corporations," he explains.
Though you might not need your financial professional's advice on how to cast your vote, you may want to consider it when the next president's proposed policies become reality in some shape or form during the next four years.
Launched in 1992, CPA NJ firm Couto, DeFranco & Magone offers business tax planning and tax preparation, non-profit audits, cost certification services, and estate and tax planning to individuals, small businesses, privately held companies, non-profit organizations, religious and educational institutions, and professional services firms. Headquartered in West Orange, NJ, Couto, DeFranco & Magone also has offices in New York City.
For more information, call 973- 325-3370 or visit http://www.cdmcpas.com.