Despite the new ‘plan’, this is -still- a no-brainer tax strategy
Despite the new ‘plan’, this is -still- a no-brainer tax strategy by Simon Black – Sovereign Man
Yesterday I recorded a new podcast with my US-based tax attorney to talk about the Trump administration’s new tax plan… or as I like to call it, the plan to have a plan.
Clearly they’re trying to do something positive and significant.
But to say that their strategy is light on details at just a single page would be a massive understatement.
Rather than rehash and recap what has already been covered in the media, my attorney and I dove into some of the more important issues: what’s NOT in the plan, what are the major details to sort out, and what’s SAFE?
Personally, I’m extremely skeptical of major tax reform… though I’d be happy to be proven wrong.
As I’ve written a number of times, the last time the tax code was updated was 1986.
Tech-savvy consumers were still using 5 ¼ inch floppy disks. Many of our readers hadn’t even been born yet.
The 1986 tax code was perfectly reasonable for an industrialized economy dominated by large companies like General Motors.
Today, technology makes it possible for companies to generate income across the world through products and services that are entirely digital.
Yet today’s companies are still forced to use the same hopelessly outdated tax code.
It’s such an embarrassing anachronism, it would be like the US government using those 1980s era 5 ¼ inch floppy disks to run its nuclear program.
The reason I’m skeptical, though, is that each and every line item in the tax code has a certain group of beneficiaries that’s willing to fight tooth and nail to keep it.
There are people who benefit from all the deductions that the administration wants to eliminate. There are even people who will fight to keep the widely-hated Alternative Minimum Tax and Estate Tax.