The Peck Group, LC
  • Comprehensive Tax Law Representation Since 1995

    We handle every aspect of tax law: preparing tax returns, representing clients during audits, resolving IRS and state tax controversies, and creating tax planning strategies for the future.

  • Problems With The IRS Or State Tax

    Our attorneys are committed to providing efficient and effective tax solutions for individuals and businesses in Georgia and nationwide.

  • Planning For The Future

    Our lawyers help individuals and businesses with all aspects of estate and tax planning. We help our clients use proactive strategies to minimize tax implications in the future

  • Changing The Balance Of Power

    Does it feel like the government has all the power? Taxpayers have rights, too. We use our knowledge of tax law to shift the balance of power and ensure that your rights are protected.

  • Tax Solutions … And Peace Of Mind

Looking at President Trump’s proposed tax changes for businesses

Many readers have, no doubt, been following the talk of the changes coming down the pipeline with respect to the federal tax system. The proposed changes are on multiple fronts, including individual income taxation, estate taxation and corporate taxation.

According to commentators talking about the proposed changes, President Trump started with a promise to reduce the corporate tax rate to 15 percent. Through discussion and debate, Trump’s team came to include within its proposed tax reform a number of other changes to the federal tax system. First of all, House Republicans have proposed moving the corporate income tax rate from 35 percent to 20 percent, which doesn’t quite hit Trump’s goal but gets closer. 

The proposed change for S corporations, which pay business taxes through the tax returns of the owners, is to drop the tax rate from 39.6 percent to 25 percent. Another change Trump plans to make to the tax code is to stop the practice of taxing overseas income that comes back to the United States. The details of the policy are still being hammered out, but American businesses would have the ability to bring earnings back to the United States without incurring any fines or taxes, as happens under the current system.

It is also being proposed, under Trump’s border adjustment tax, that the value of exported goods should be exempted from border taxation, while the value of imported goods should be taxed. This is a particularly controversial proposal since it would increase the cost of imported goods for consumers. On the other hand, as some commentators have pointed out, it will also allow consumers to buy more goods and services for their money.

In our next post, we’ll continue looking at some of Trump’s proposed changes and what it might mean for businesses going forward.

Source: CNBC, If Trump and Congress 'botch' tax cuts, GOP could lose House, Republican Steve Forbes warns,” Matthew J. Belvedere, Feb. 8, 2017. 

No Comments

Leave a comment
Comment Information
Email us for a Response

Talk to an Attorney

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

The Peck Group, LC
5855 Sandy Springs Circle N.E., Suite 190
Atlanta, GA 30328

Phone: 770-884-6914
Fax: 770-933-2369
Atlanta Office Location

Payment Cards