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Posts Tagged ‘tax reform’

I wasn’t always like this, I swear. There was a time in my life when if I wanted to satisfy my urge for tinkering, I’d kill a few hours on ESPN’s NBA Trade Machine, trying to determine exactly who my beloved New Jersey Nets would have to give up to acquire a young James Harden. But now…well, now I scratch that same itch by wondering, “Can I devise a revenue-neutral tax reform plan?”

And yes, I am significantly less fun at parties than I used to be.

But before my nerdiness drives you away, consider the importance of my undertaking. A revenue neutral tax plan — one that generates the same amount of tax revenue over the next decade — is the carrot the GOP is chasing. Why? As we’ve discussed in this space before, a tax reform plan — one that cuts rates, simplifies the law, and yes, as mentioned in the previous sentence, results in no net loss of tax dollars — can be passed through what’s called the “budget reconciliation process.”

Under this process, should the House and Senate ever get around to approving budgets that provide for a tax reform plan, that plan could be passed with only a simple 51 majority in the Senate. And because Republicans currently hold 52 seats in the Senate, it means that the GOP could pass its vision of tax reform without a single vote from a Democrat.

The catch, however, is that in order to use the reconciliation process, any bill cannot add to the deficit beyond the ten-year budget window, hence the need for revenue neutral tax reform.

How hard can that be?

Continue reading on, Forbes.com

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

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After enduring the healthcare debacle, Charlottesville nightmare, and a seemingly endless string of natural disasters, the White House is desperate for some good PR, and revamping the nation’s tax law is where it aims to find it.

Over the past year, many promises have been made and modified, proposals floated and abandoned, and timelines established and extended. And while I’d like nothing more than to use this space to get you caught up on the details of where we stand today — projected tax rates, a review of what deductions will be eliminated or survive, etc… — the reality is, those details simply don’t exist. In fact, we know far less today about what tax reform might look like than we did seven or eight months ago.

So instead, I’d like to take a look at the big picture: what are the five biggest questions that must be answered before the GOP can fulfill one of its biggest promises to the American public: a more simple, more fair tax system that leaves additional cash in the hands of businesses and families? Let’s take a look.

Continue reading on, Forbes.com

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

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What a rip-off. This was supposed to be my fifteen minutes. The summer of 2017 was when the discussion surrounding tax reform was going to dominate the airwaves, newswires and internet, with every TV station, publication and web site coming to me for my opinion on the pros and cons of potential changes. And I was going to shine.

But none of that materialized. Instead, tax reform has been largely forgotten, as the legislative progress has been stopped in its tracks by the never-ending, irreconcilable argument over Obamacare and, more recently, some potential light treason.

But yesterday, the veritable eggheads at the Tax Policy Center snapped me out of my summer doldrums and brought tax policy back to the forefront of the social consciousness by publishing its analysis of President Trump’s most recent tax plan. And it’s nothing if not revealing.

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.

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

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Time’s up.

On February 9th, President Donald Trump made the following promise:

“We’re going to be announcing something over the next, I would say, two or three weeks that will be phenomenal in terms of tax.”

Now, say what you will about Trump’s presidency, but to date, he’s followed through on his promises. He said we’ll have a wall? We’re getting a wall. He said he’d keep terrorists out? He’s enacted sweeping — and potentially unconstitutional — immigration reform. Twice. He said he’d drain the swamp? He…well, two out of three ain’t bad.

But where’s the tax plan? Drastic individual and business tax cuts were a huge part of Trump successful campaign, but in the first 50 days of his presidency, he has produced nothing.

What’s the holdup?

Continue reading on Forbes.com.

 

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

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In President Trump’s recent speech to Congress, he said very little about his much-anticipated plan for tax reform. One thing he did say was this:

We will provide massive tax relief for the middle class.

This promise was surely met by cheers from coast to coast, as it should have been. But it raises an interesting question: how does a middle-class taxpayer measure whether the President delivers on his promise? Do you simply view the tax cuts for the middle class in isolation? Or must the cuts be viewed in their larger context, relative to those bestowed upon the richest Americans?

Continue reading on Forbes.com.

 

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

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