The tax cuts put into place by the Tax Cuts and Jobs Act of 2017 (TCJA) are set to expire next year. The current proposals put forth by the warring political parties couldn’t be more different.
There’s only $6T in differences between them.
GOP lawmakers want to extend TCJA making it permanent. Over the next decade, estimates put this at $4T in tax savings.
Americans would continue to enjoy the lower tax brackets that were widened, including more income. Small Business owners would continue to enjoy a basket of savings including the Qualified Business Income Deduction that saves up to 20% on pass-through income.
C Corp Owners would continue to save with the abolition of the graduated income tax system where the highest tax rate was 35%. They now pay a flat rate of 21%.
But the New Administration’s proposal is starkly different.
They have proposed that TCJA only be preserved for families earning less than $400K annually, and that it should expire for everyone else. In addition, the President is proposing more tax increases that he hasn’t yet fully disclosed.
The White House has told us that overall it would total $2T in additional taxes over the next decade. The new administration already tried to do this once, but the tax package failed back in 2022 with Senators Joe Manchin (D. W.VA.) and Krysten Sinema (I. AZ.) breaking ranks to vote down the bill.
In the 34 years that I’ve been an entrepreneur, I’ve never seen a more different vision for America’s future that the warring factions now propose. Depending on who wins in the fall, that difference will substantially affect our businesses, our employees, and our families.
Let me leave you with this.
If you think the weather we’re having is bad, you haven’t lived in this town very long.
On January 26th of 1967, it began snowing and didn’t stop for 30 hours. The official record says that we got 23 inches.
But the reality was a bit different.
My now sainted Mother drove to work that day in her ’56 T Bird. When she left work, the snow had drifted to a point where the only way she knew where she’d parked the car was from the radio antenna sticking an inch and a half out of the snow.
Most drifts were at least 6 feet tall. Lake Shore Drive was a parking lot. People got stuck and just abandoned their cars. To the day she died, Mama said that she only got home that day by the grace of God.
The headline on the front page of the Tribune the following day read, “10 Die, Schools Close, Zero Predicted”.
I was seven months old and had Double Pneumonia. We were snowed in and no one was going anywhere.
My Mother and Grandmother stayed up with me during the day, nursing me and doing whatever they could. My now sainted Grandfather stayed up for three straight nights, cradling me in his arms, walking the floors, and helping me get the rest I so desperately needed to stay alive.
Grandpa was an almost full-blooded Cherokee who was a millwright and a bricklayer. Years of laying bricks had given him forearms that looked like Popeye’s. He layed my little head on that massive forearm and sang lullabies to me for three nights in a row.
The fourth day they were able to get me to a pediatrician who took one look at my Mama and said, “The only reason your son’s alive today is what your dad did to keep him with us.”
The Blizzard of ’67 almost killed me. I was lucky that I had an old Cherokee named Gray Knight who willed me to live.
Others weren’t so fortunate.
Think about that this week as the temperatures plummet. Believe me. This is nothing.
Fahgetabadit, got to work, and get something done.
We’re all going to get through this. Let’s get through it together.
As an inducement, we’re offering 33% off your first six months of bookkeeping and / or the first three months of electronic payroll services on a complimentary basis. In order to claim this benefit, please click on the appropriate button below and provide your contact information. We’d love to help.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
www.SalarySolutions.net
www.AccountingSolutionsLtd.com
Note that the only professional services provided by Accounting Solutions Ltd. are those specified in a written communication from our office detailing the scope of services to be rendered and the terms and conditions applicable to the engagement.