3/15/2023 0 Comments Does trump read from a prompterHere again the benefits don’t get evenly spread. That’s probably a good thing overall, but in some industries, it could be catastrophic. Interest not deductible: Inability to deduct interest expenses will discourage borrowing. Especially tech firms and manufacturers, biotech companies with large R & D outlays, and other firms with large capital costs. This also means that the actual effective corporate tax rate is going to be a LOT lower than 20% for most business. This simplifies bookkeeping, which is nice, but it will also have an impact on balance sheets. Land costs will still have to be amortized. Businesses will be able to immediately “expense” (deduct from income) capital expenses that once had to be split over many years.īuild a factory this year, and the full construction costs will be deductible this year. I’m not sure anyone has truly thought these through yet. The Better Way Plan’s other aspects will also bring about major changes in the way American businesses operate. And increasing the earned income tax credit and streamlining education tax benefits are both good things. Many of the other changes really will make it much easier and simpler to pay taxes. Getting rid of the AMT-both corporate and private-for example, is a very good thing. Let me say that some of these features are very appealing.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |