Trump will focus on corporate tax changes first to support his goal to increase U.S. job growth, and individual tax reform will wait until a second term. ~ Tom Wheelwright, Author of Tax-Free Wealth
Tempe, Arizona (PRWEB) April 03, 2017
CPA, CEO and Tax-Free Wealth Author Tom Wheelwright predicts four corporate tax changes will be the top priorities for Trump Tax Reform this year. During the last major tax reform by President Ronald Reagan, Mr. Wheelwright worked for the National Tax Office at Ernst and Whinney (now Ernst Young) in Washington D.C., and understands what it takes to implement tax changes.
Wheelwright expands, “Trump will focus on corporate tax changes first to support his goal to increase U.S. job growth, and individual tax reform will wait until a second term. Both President Trump and Congressman Ryan are committed to implementing lower taxation on U.S. exports and higher taxation on imports to make our country more competitive.”
During the last major tax reform by President Ronald Reagan, three major corporate reform tax bills passed in 1981, 1982 and 1984 during his first term of office. For example, major increases in depreciation tax rates for equipment and real estate fueled the economy with investment money.
4 Trump Corporate Tax Reform Priorities predicted by CPA Tom Wheelwright
1. Corporate Tax Rate Reduction – A reduction from 35% to 15% or even a 20% in corporate tax rate would drive companies to locate facilities and jobs in the U.S. Instead of being one of the highest-tax countries, the U.S. would become one of the lowest-taxed countries. This major reduction in U.S. corporate tax rates would drive companies to locate in the U.S. The challenge will be paying for the tax reduction.
2. Tax Amnesty for Money Overseas - A tax amnesty for income brought back into the U.S. from overseas is another strategy Congress and the Administration may use to help offset the cost of the corporate rate reduction. An estimated $2 Trillion of income has been deferred by U.S. companies. With the proposed 10% amnesty tax rate, companies will want to repatriate income. To support this tax change, Congress is likely to include the full $200 billion estimate of the amnesty tax in its budget calculations.
3. Border Tax on Imports - Some type of border tax on goods imported into the U.S. from other countries is very likely, particularly from Mexico. President Trump has asked for a tariff, and Paul Ryan has asked for a border tax imposed through changes to income tax deductions. The tariff is the easier short-term solution for Congress and the Administration to raise revenue and punish companies for outsourcing their manufacturing jobs.
4. VAT (Value-Added Tax) on Imports – A VAT is another tax reform option with the effect of a border tax that would exempt exports and tax imports. A VAT tax would result in a massive benefit for exports and significantly increases the price of imports. Lacking a VAT has put the U.S. at a serious disadvantage to its global trading partners. The VAT has the advantage of being recognized worldwide.
Wheelwright predicts President Trump will not propose individual tax reform until a second term, similar to President Reagan in 1986. Both the Administration and Congress will need to be 100% on board to achieve any significant individual income tax reform, which is not likely during a first term.
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, NPR and many more media. http://taxfreewealthadvisor.com