How Will The Election Impact YOUR Business?

As a business owner we need to be ready for the unthinkable. We may not know who will win the election in November, we may not know who will hold the power in congress, but we do know, with certainty, that if we plan for all possible outcomes, when it comes to being proactive in our business and taxes, we shall emerge victorious no matter the results. Instead of focusing on who we want to win, our focus should be on preparing for all outcomes. We need to be ready to implement and revise, if necessary, our business plans in accordance with who wins the election in November. We need to be proactive in reference to the business and tax changes the election results will bring. Here are some of the biggest tax changes that will occur depending on who is elected this coming November:

Donald Trump

Donald Trump’s tax plan focuses on significantly reducing the marginal tax rates not only on individuals, but on businesses as well. His plan also calls to increase standard deduction amounts to nearly four times the current levels.  Overall, his proposal would restrict many tax expenditures. These tax cuts would take effect at all income levels, although those with the highest-income households would receive the largest benefits in dollars and percentages. Over the first decade Trump’s plan would reduce federal revenues by $9.5 trillion, before added interest costs. Although his plan would increase the incentive to work, save, and invest, it is followed by very great spending cuts and it would increase the national debt by almost 80% of gross domestic product by 2036 which would offset some or all of the incentive effects of the tax cut.

Hillary Clinton

Hillary Clinton’s tax plan focuses on raising taxes on high-income taxpayers, revoking fossil fuel tax incentives, adjusting taxation of multinational corporations, and raising estate and gift taxes. Almost all of the tax increases in her proposal would fall on the top 1% of taxpayers. The marginal tax rates would rise which in turn would reduce the incentive to work, save, and invest. This increase would also cause the tax code to become more complex.  The taxpayers on the bottom 95% would see little to no change in their taxes. Clinton’s current tax proposal does not address a plan to cut taxes for low and middle-income families.

In order to be fully prepared for the potential changes in the tax code please contact Flint & Associates, A CPA Firm.

*This is not an endorsement for either candidate, political party, or tax reform plan.