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Trump's New Tax Reform and What It Means for Your Business

Oct 18, 2017 11:31:27 AM

This fall the Trump Administration and GOP leaders have issued a broad tax framework as a start to a tax overhaul within Congress. The reform claims to create “More Jobs, Fairer Taxes, and Bigger Paychecks” through closing loopholes and growing the economy. The numerous changes offered in the document will effect businesses big and small; these include:

  • Tax Rate Structure for Small Businesses
  • Tax Rate Structure for Corporations
  • “Expensing” of Capital Investments
  • Interest Expense
  • Tax Rules Affecting Specific Industries
  • With even more being included in the full document.

These changes will undoubtedly help out businesses based on the first two changes alone; the Tax Rate Structure for Small Businesses limits the maximum tax rate, “applied to the business income of small and family-owned businesses conducted as sole proprietorships, partnerships and S corporations to 25%” with the Tax Structure for Corporations being limited to 20%, below the 22.5% average within the industrial world.

Additionally, companies will be able to expense the cost of new investments in depreciable assets, limiting the net interest expenses, and modernizing the tax regimes of multiple industries and sectors to reflect the present economic state.

As of now many industries show support for the new reform; Cicely Simpson, executive vice president of public affairs at the National Restaurant Association, states, ““The National Restaurant Association applauds the tax reform framework. We look forward to engaging with the President and Congress as the negotiations regarding tax reform continue.” She also adds that if the proposed reform becomes law it would help the restaurant industry, “thrive and grow.” (National Restaurant Association, 2017)

Want to read the proposed tax reform for yourself? You can do so by clicking HERE

National Restaurant Association. (2017, October 2). News & Research. Retrieved from National Restaurant Association: http://www.restaurant.org/News-Research/News/NRA-offers-kudos-to-President-Congress-on-tax-ref

About Proliant

Proliant puts the human in human resources. We provide a fully integrated, cloud-based HCM solution that simplifies payroll and HR processes. The company serves small to large clients in multiple industries in all 50 states and is committed to providing the highest quality customer service in the industry.

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