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Archive for the ‘president trump’ Category

Earlier today, the House of Representatives released its vision of tax reform, and there’s a lot to digest. Over 420 pages, in fact. Luckily, there has been no shortage of quality coverage of the bill around the interwebs, detailing the changes to tax rates and personal exemptions and the like.

But with 420 pages, some things are sure to slip through the cracks, and it is to these less publicized items that this column intends to draw attention.

Of course, there are both unexpected tax breaks and increases hidden within the bowls of the bill, but lest you forget, I’m generally a miserable person who prefers to dwell on the negative. As a result, let’s take a look at six tax breaks that you very likely didn’t realize you will lose if today’s bill becomes law.

#1: Divorce just got even more expensive

Under current law, alimony payments are deductible by the payor, and considered taxable income to the payee. And because you people are simply incapable of remaining faithful, there is a lot of alimony paid each year, about $10 billion to be exact.

Continue reading on, Forbes.com

Authored by Tony Nitti, Withum Partner and writer for Forbes.com.

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Today was the day. At long last, the first domino that may eventually leave to a thorough overhaul of our tax law was toppled by the House of Representatives with the release of the Tax Cuts and Jobs Act.

For members of the tax-paying public, it can be tough to make sense of it all. When searching for someone to explain the potential changes in terms anyone can understand, options are scarce. Of course, you could simply wait around for the White House’s afternoon presser and listen to Sarah Huckabee Sanders correlate the corporate tax cuts with the exploits of “a man from Nantucket.”

Or, you could just keep reading here. Because what follows is a 30,000 foot view of the new bill, and I say that not because it’s a brief and top-level summary, but rather because I’m actually typing on a plane from Aspen to NYC.

Continue reading on, Forbes.com

Authored by Tony Nitti, Withum Partner and writer for Forbes.com.

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On September 27, President Trump and the “Big 6” Republican tax leaders laid out their plan for tax reform. Withum partner and nationally known Forbes columnist Tony Nitti conducted a complimentary one-hour long webinar separating fact from fiction helping listeners understand the proposal and what is slated to change.

If you did not have the opportunity to tune in, you can listen to the podcast by clicking the play button below:

Webinar presented by Tony Nitti, Withum Partner and writer for Forbes.com.

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Back to the ol’ drawing board.

It was just 48 hours ago that President Trump released his long-awaited tax plan to an eager public. This was a plan, the President promised, that was focused on cutting taxes for the working man. As he put it, “Our framework includes our explicit commitment that tax reform will protect low-income and middle-income households, not the wealthy and well-connected.”

The rich, he went on to explain, would not benefit one bit under his plan. This mirrored a previous promise made by Treasury Secretary Steven Mnuchin, in what has become known as “Mnuchin Rule.” The President was adamant:

“By eliminating tax breaks and loopholes, we will ensure that the benefits are focused on the middle class, the working men and women, not the highest-income earners. They can call me all they want. It’s not going to help. I’m doing the right thing, and it’s not good for me. Believe me.”

Well, Mr. President, it appears as though you can stop worrying about rich friends calling to complain. They’re going to do juuuust fine under your plan, and so are you, as evidenced by an analysis released today by the Tax Policy Center. They and you will do disproportionately better, in fact, then the lower-class taxpayers you said were the focus of your tax cuts.

Oh, and as for America’s forgotten middle class? For those making between $100,000 and $300,000, well…there is a one-in-three chance they will be paying more in tax then under current law.

How did the GOP’s tax reform proposal so badly miss its mark? Before we dive in, let’s get a quick refresher on what the proposal had to offer.

Continue reading on, Forbes.com

Authored by Tony Nitti, Withum Partner and writer for Forbes.com.

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A few summers ago, my wife and I marked our ten-year wedding anniversary with a three-day getaway to Block Island. Our first night on the island, we went out to dinner, and while we awaited the arrival of our food, my wife shared the story of friend who had recently gotten a new job, and when she and her husband arrived at the restaurant that night to celebrate with dinner, the husband had thoughtfully arranged to have a bottle of champagne waiting at the table with a note that read, “Congratulations!”

Maybe my wife meant that as a hint; maybe she didn’t. That’s when it dawned on me: Ten years is a big deal. There are expectations involved. I should probably live up to them.

In recent days, President Trump found himself in the same uncomfortable situation I endured at that table in Block Island. Soon to mark his 100th day in office, he realized that he had done nothing to fulfill his promise to deliver a “phenomenal tax plan.” So as I did during dinner with my wife, the President scrambled for the best solution he could: a rushed, half-hearted gesture meant merely to meet his minimum obligations. There was no plan. There were no details. There was, quite literally, a one-page release with a handful of bullet points, that only served to raise more questions than answers.

But before we get to those questions, let’s take a quick look at the “plan.”

Continue reading on Forbes.com

Authored by Tony Nitti, Withum Partner and writer for Forbes.com.

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The flames had not yet cooled on the American Health Care Act — the GOP’s seven-years-in-the-making plan to repeal and replace Obamacare — before Republican leaders had moved on to its next top priority: tax reform. And from that emphatic pivot was born a golden moment for people like me; after all, it’s not often that tax law rises to the forefront of the public consciousness. But that’s where we’re heading…maybe for mere weeks, but possibly for months or — dare I say it? — years. A time where discussions of deductions and talk of tax brackets will dominate newspaper pages, Facebook timelines, and Twitter feeds.

Sure, these rare moments serve as career validation for people who have made the ill-advised choice to spend their lives in the bowels of the tax law, but debates over reform of those laws shouldn’t be preserved solely for us. Everyone should get in on the fun, and to that end, here’s a little primer for you: five headlines you’re sure to read about tax reform as the process unfolds.

Continue reading on Forbes.com

Authored by Tony Nitti, Withum Partner and writer for Forbes.com.

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In early March, GOP leaders Kevin Brady and Paul Ryan unleashed their plan to repeal and replace Obamacare, publishing proposed legislation in the form of the American Health Care Act. Last week, the Congressional Budget Office released its score of the plan, and two of the primary criticisms that emerged from the report were as follows:

  1. The plan results in an $880 billion tax cut over the next decade, with at least $274 billion of the cuts going directly into the pockets of the richest 2%, and
    Medicaid would be cut by an equivalent $880 billion over the next decade, making it more difficult for low-income taxpayers to procure insurance.
  2. Last week, the GOP released amendments to its health care bill, and in response to the shortcomings highlighted by the CBO report, the changes to the bill would add more tax breaks for the rich and further slash Medicaid funding.

Continue reading on Forbes.com

 

Authored by Tony Nitti, Withum Partner and writer for Forbes.com.

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