The Tax Man cometh. The only certainties are death and taxes. Congress never met a tax it didn’t like.
Why are there so many sayings about taxes? Probably because you can’t (legally) get away from them! 🙃
So let’s look at some tax related things that might be heading our way in the coming months.
Here are Five Fast Facts about possible tax changes in the near future:
- 🫙 Tip Jar - One tax change that was promised by both candidates is no taxes on tips. This will likely be a popular idea with support on both sides of the aisle, but we don’t yet know how this will be implemented so it’s hard to say exactly how or when it will happen. Let’s just hope it does!
- 🚫 No Overtime (Taxes) - Another popular proposal was no taxes on overtime pay. This would obviously benefit a lot of normal folks who rely on overtime to pay their bills. It’ll be tricky to prevent abuse, but could be a really nice benefit for people who are struggling with inflation-boosted prices. You know, like everyone.
- 2️⃣ Round Two - Trump cut the corporate tax rate from 35% down to 21% during his first term, and he’s looking to cut it to 20% this time around (and down to 15% for companies making their stuff in the US). This won’t give a direct benefit to normal folks, but it does lower costs big time for companies, and that means lower prices overall. Do we hear future bonuses for workers in the making, too??
- 👍 Social And Secure - Another banger in popularity would be no taxes on Social Security. There are currently about 70 million Americans getting SS checks, and around 40% of those pay income taxes on those checks. Nothing beats a fixed income like being taxed on the fixed income, right??
- 💵 Fistful Of Reductions - Trump has thrown out a bunch of other proposals: bonus depreciation, R&D deductions, stock buybacks breaks, family caregiver deductions, and more. How realistic are these, and what will they mean? Dunno yet. But you can bet a lot of people are very interested to learn the details once January rolls around!
🔥Bottom line: All of these are just proposals at this point. They sound great, but proposing them doesn’t mean they’re guaranteed to happen. Trump still has to get Congress to play ball, and even with a Republican majority in both houses that’s not a lock. Plus, many of these proposals may have some potentially big impacts on the national debt so they’ll have to act carefully to get these things done without causing big economic damage. But if they can get even a couple of these passed into law, it should provide some major relief for people just trying to get by.
Which of these do you think is most likely to happen?
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