Trump and Taxes
By Nehemiah Jefferson, Esq., LL.M.
Must we really speculate what the 47th President of the United States and his administration along with Congress will do as it relates to tax policy?
I’ll get straight to the point. Expect tax cuts!
The 2017 Tax Cuts and Jobs Act (TCJA), enacted when Donald Trump was the 45th President, lowered individual taxes across the board for all those who had tax liability, lowered the corporate tax rate, created generous bonus depreciation, doubled the estate tax exemption, and gave a qualified business income deduction of 20% to certain business owners. Some provisions of the TCJA are set to expire this year (2025). Expect these provisions to be either extended or made permanent. Without an extension, tax bill liability will go up.
President Trump has also floated the idea of lowering the corporate tax rate even more from 21% to 20%. Moreover, a corporation that manufactures their products in the U.S. could pay a tax rate as low as 15%. A great incentive!
President Trump, on the campaign trail, grabbed the economic ears of Americans when he talked about no taxes on tips, overtime, and social security. It remains to be seen if Congress has the courage to enact that tax policy legislation. Americans are watching.
Tax Planning can be challenging in uncertain times. With any legal tax matter, you should consult a Tax Attorney. This article is for educational purposes only, is not legal advice, is not a substitute for consulting legal counsel, and does not create an attorney-client relationship.
Nehemiah Jefferson, Esq., LL.M., is Principal of America’s Tax Attorney LLC. The firm provides Civil and Criminal Tax Representation to individuals, businesses, and tax professionals nationwide. Other practice areas include Estate Planning, Probate, and Business Planning. He earned his Bachelor’s degree from The Florida State University, his Juris Doctor from John Marshall Law School (Atlanta), and LL.M. in Taxation from the University of Alabama. Attorney Jefferson is licensed to practice law in the State of Florida, Texas, The District of Columbia, and is a member of the United States Tax Court Bar. He is the author of “Tax Relief Now” and may be reached at www.americastaxattorney.com.