What Would President Trump’s Tax Reform Mean For You?
So, what exactly are his goals, and how will these potential changes impact you, as business owners?
Before we dive in, it is important to note that, while tax reform remains high on the President’s list of priorities, these are only recommendations at this point, and no official legislation has been proposed or introduced. It is also unclear how these changes would be funded.
Some of the key proposed guidelines released by the Trump Administration include:
- Reduce the tax rate on C corporations to a single rate of 15%, down from the current range of 15 – 35%
- Allow pass-through entities to be taxed at the reduced, corporate tax rate of 15% instead of the individual rate, which currently tops out at 39.6%
- Trim the number of individual tax brackets from seven to three – 10%, 25%, and 35%
- Double the standard deduction and possibly eliminate select itemized deductions, potentially leaving only charitable contributions and mortgage interest
- Repeal the alternative minimum tax (AMT), federal estate tax, and 3.8% net investment income tax
Regardless of where you stand politically, major tax reform may be on the way. We will continue to provide updates as they are released. If you have any questions about how potential changes could impact your business, please contact our team today at (503) 697-4118.
Delap LLP is one of Portland’s largest local tax, assurance, wealth advisory, and information security consulting firms, located in Lake Oswego, Oregon.