The framework of Trumps's tax reform, is lowering the corporate tax rate to 20 percent from 35 percent. On the other hand, many of deductions that corporation enjoy, can be eliminated as such.
The plan eliminates state and local tax deductions, meaning taxpayers in states with high taxes will lose out on the write-off. This impacts those in mostly blue states, such as California and New York. So the door for states to tax its citizens become difficult. People and businesses may leave states with high State taxes for other much lower ones..
Streamline the tax process will lead less people to hire tax accountants, lawyers and firms.
Domestic spending, welfare programs and education, etc. could take a hit as money is reassigned.
Yet all in all, businesses and corporation will expand greatly benefiting all.
No comments:
Post a Comment