While corporate tax reform is likely during President-Elect Trump's first term, individual tax reform will most likely not happen unless he makes it to a second term. ~ Tom Wheelwright, CPA and Tax-Free Wealth Author
Temple, Arizona (PRWEB) January 17, 2017
Tax-Free Wealth Author, CPA and CEO Tom Wheelwright predicts how Trump Tax Reform may impact income by comparing the proposed corporate versus individual tax changes. Mr. Wheelwright was recently interviewed on FOX & Friends, where he shared the likelihood of the proposed tax changes, timing of approvals, and potential economic impacts.
During the last major tax reform by President Ronald Reagan in 1986, Mr. Wheelwright worked for the National Tax Office at Ernst and Whinney (now Ernst and Young), and understands first-hand what it takes to implement the changes proposed by President-Elect Trump.
Corporate Tax Change - Trump proposes to drop the corporate tax rate from 35% to 15%. Mr. Wheelwright predicts that there will be a reduction in corporate taxes, but it may be to 20% versus 15%. When asked if Congress is on Trump’s side with this change, Wheelwright emphasizes, “Absolutely. Paul Ryan understands the challenges that the high corporate tax rates create with our exports overseas, our competition, so I think for sure we’re going to see that.”
In addition, Wheelwright believes the US would become a "tax haven” if Trump got the 15% corporate tax rate approved. Instead of companies setting up headquarters in Ireland for tax breaks, corporations would move to the U.S. to save money on taxes.
While a 15% tax rate may turn the U.S. into a tax haven, the cost to the Treasury could be overwhelming. Because of a potential surge in the Federal deficit with lower tax rates, Wheelwright believes it is unlikely for corporate tax rates to go below 20%.
Individual Tax Change – Trump is proposing to reduce individual tax rates from 7 to 3, which is the same thing President Reagan did while in office. Wheelwright predicts that this proposal is not likely to happen during Trump’s first term because “tax reform for individuals is a huge challenge.” If Trump makes it to the next term, Wheelwright thinks individual tax change will happen.
When considering the overall impact of the proposed tax changes, Wheelwright emphasizes that if tax rates are reduced and “tax incentives” (like deductions) are taken away, it can effectively be a tax increase. Everyone needs to consider how these changes may effect their bottom line income.
Wheelwright also predicts positive economic and income impacts if the corporate tax rates are reduced. The stock market is likely to rise, which would increase the value of many IRAs and 401k retirement plan investments. Wheelwright also believes that a corporate tax rate reduction can result in an increase in jobs, and have the intended effect of Trump’s overall economic plan.
To take advantage of the likely corporate tax rate reductions under a Trump administration, Wheelwright encourages everyone to start a business (employees can start a home business on the side), get educated, and find a better Tax Advisor. A great Tax Advisor can mean millions in tax savings over a lifetime, no matter what happens to the tax law.
For a timely interview with Tom Wheelwright, please contact
Liz Kelly, Goody PR, 310-987-7207
Tom Wheelwright is a leading wealth and tax expert, Best-Selling Author (Tax-Free Wealth), Entrepreneur Magazine Contributor, and CEO of ProVision (Tempe, Arizona). Tom is best known for making taxes fun, easy and understandable, and specializes in helping entrepreneurs and investors build wealth through practical and strategic ways that permanently reduce taxes. As a Rich Dad Advisor to Robert Kiyosaki (Rich Dad Poor Dad), Tom frequently speaks at conferences worldwide on these topics. His work has been featured in Forbes, Accounting Today, Investor’s Business Daily, Consumer Reports, ABC News Radio, FOX & Friends, FOX News, CBS 5 News Phoenix, GoBankingRates, Consumer Reports, Newsmax and many more media. http://taxfreewealthadvisor.com