Will One of Trump’s Top Tax Breaks Get the Axe?

shutterstock_628599701

As the new president and his administration continue to tout their big plans for a major tax overhaul in the U.S., it remains to be seen if the proposals will get passed in the House and Senate. While both branches of government are all for tax code reform, there are still differences that must be overcome. For example, House Republicans are currently weighing the possibility of killing one of President Trumps’ personal favorite tax deductions.

This tax provision has been around for hundreds of years and it has been a huge boost to the president’s real estate fortune. However, it could become one of the biggest tax fights in Washington in the coming months. According to reports, in order to offset the proposed reduction in the nation’s corporate tax rate, the House would like to use the $1 trillion that would be raised by ending a deduction for businesses’ interest expenses.

While doing so would help fund the government and its programs, there are several industries that are already clamoring for the deduction to be retained as is, including private equity companies, real estate moguls, and even farmers – all of which claim that they have to borrow money in order to operate. They fear huge tax increases if the deduction is removed.

So far, Republicans are divided on the issue, while the president himself has long supported the deduction for obvious reasons. His Treasury Secretary has said that they prefer to keep it in place but that all options are still open. Stay tuned, because this could end up being a big fight in the nation’s capitol.

Posted in
CPA as President

Why not a CPA as President?

Why not a CPA as President? By William Brighenti With the economy the most central issue, why not elect a CPA as President? A recent poll showed that 47% of our fellow citizens thought that the economy was the central issue of our country. So we elect lawyers to manage and direct our economy? Why…

Income Insurance

Business Income insurance

Business Income insurance Business Income Insurance – Often Misunderstood; Things to Think About By R. Scott Wolf Business Income Insurance is probably one of the least understood components of an insurance program, yet it is probably one of the most important. It is akin to what disability insurance does for us personally should we become…

BUS SALESTAX; Business Sales Tax

Business Sales Tax

Business Sales Tax Sale of a Business – Sales Tax Impact Buying and selling a business can be structured to be tax-free from the standpoint of federal income taxes through the merger and other reorganization provisions of the Internal Revenue Code. However, a tax-free transaction from a federal standpoint may not be tax-free for State…

tax telecommuting

Tax Telecommuting

Tax Telecommuting If you’re thinking about setting up employees as telecommuters, you’re not alone. Businesses ranging from large multi-nationals to small shops know that telecommuting not only can improve worker morale and performance, it can also save you and your employees money. What’s not to like about zero commuting costs and no office rent? You…