Over the 30 plus years I’ve been involved with accounting and taxes, we have had an overhaul of the tax laws just about as often as we have had a new president.
We understand this—each candidate has their own special plan for raising or lowering taxes and once in office, they work to implement those life changing rules for the middle class.
This year is no different. Marco Rubio wants to eliminate most deductions and capital gains tax. Ted Cruz and Ben Carson want a Flat Tax and to abolish the IRS (that thought only occurs to me in my dreams).
Donald Trump would eliminate the corporate income tax and the estate tax. In addition, his highest income tax would be 15% for individuals over $1 million of income. This sounds wonderful but where is the money going to come from to run the government?
Bernie Sanders will increase taxes on most, and for the most wealthy, the rate will hit close to 50%. He counters with health care that will offset these increases.
Hillary Clinton will also have additional taxes for the wealthy and also have a minimum tax of 30% on higher adjusted gross income – not sure how that will work.
As a CPA who makes the majority of his revenue working in the tax arena, new presidents equal more confusion in the tax code and regulations which equal more confusion by the taxpayers. At some point a tax return is just too complicated to do without a tax professional and that’s why we’re still in business.
Do I have a favorite? Of course I do. But this is not the forum for me to disclose who I want in the White House. What I can tell you is that any of the candidate will continue to keep the CPA world very busy learning new tax law and then applying it to your returns.
Flat Tax—Sales Tax—More Tax—No Tax (sounds like a Dr. Seuss story); we can handle them all at Hutchinson and Walter so bring me your candidate and bring me your tax information. We are open for business.
Thanks for listening and I will talk at you again.