By Michael Gracik, Jr., CPA, Director
Richard Rubin’s WSJ article, “In GOP Tax Bill, How You Get Rich Matters“, does a great job of explaining the proposed cuts in corporate tax rates for businesses and some of the inconsistencies as to how businesses will be taxed under these provisions.
Should these provisions be passed into law, they will be a major game changer in the way that businesses are taxed and how businesses will be structured to minimize income taxes.
“The plan, which was unveiled this past week and will be further dissected when lawmakers return to Washington on Monday, aims to eliminate estate taxes by 2024. It cuts to 20% the tax rate on corporate income. It also cuts to 25% the rate on some income that owners of so-called pass-through businesses such as partnerships and S corporations earn from their operations.
At the same time, the House plan leaves a top tax rate of 39.6% for those earning big salaries from their employers and doesn’t touch the top tax rate of 23.8% for capital gains and dividends.
In total, the party’s proposed vision of the tax code shows its focus in rewarding taxpayers who lawmakers think boost the economy the most.
The Keiter tax team is closely monitoring proposed business and individual tax law changes and will continue to keep you informed. If you have any questions on this topic or your particular tax situation, please contact your Keiter representative or Email | Call: 804.747.0000.
The Wall Street Journal
Author: Richard Rubin
—Laura Saunders and Siobhan Hughes contributed to this article.
Appeared in the November 4, 2017, print edition as ‘In Tax Bill, How You Get Rich Matters.’
Copyright ©2017 Dow Jones & Company, Inc. All Rights Reserved.
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