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Tax Reform
No doubt by this time you have heard probably more than you would like about Tax Reform. On November 2nd, Republicans in the United States House of Representatives introduced legislation outlining new guidelines to simplify a very complicated tax code. The Democrats have weighed in with their feedback and adjustments, and as of press time the U.S. Senate was preparing to release their tax reform plan as well. Now…Let the Talks Begin.
It appears that the overall key points thus far are indeed centered on simplification. Reducing the number of tax brackets from seven down to four and reducing the number of itemized deductions while increasing the standard amount for all taxpayers is a very good start. The current discussion also includes eliminating the cumbersome Alternative Minimum Tax and eliminating the Estate or Death Tax over a number of years.
In addition to simplification, the current ideas also include reducing the overall tax rate on business income, including small business income, and expanding the options for expensing new business equipment in the year of purchase. These two pieces of tax reform will provide more after tax money in the hands of business owners which will lead directly to new investment, new growth, and new jobs.
The devil is always in the detail so the key benefits and the final agreement on tax reform is yet to be determined, and this is where you come in. It is critical during these talks that we all concentrate on making sure the small business voice is heard. We will continue to fight with our loudest voices for small business in D.C. but we need your voice even more. Regardless of which way you lean politically, it is important to let your congressional leaders know what is important to you. Please take a few minutes to let your voice be heard.
Go to NASE.org and navigate to the Legislative Action Center…type in your zip code, and you will see your specific congressional representative and both of your senators. Click on the email icon and tell them what is important to you. The talks have begun. Now is the time to be part of the discussion.
As always, don’t forget that you are not alone. Bookmark our website at NASE.org as well as the IRS website at IRS.gov you will always be able to find the help you need.