Announcement

Collapse
No announcement yet.

Thought on potential Trump Tax plan for Partnerships

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Thought on potential Trump Tax plan for Partnerships

    Obviously a lot of the specifics have yet to be released.  Without starting a political discussion, I would like to hear thoughts about the the true benefit this could have?  Specifically, there is a constant discussion about droping the tax rate for "pass throughs" such as partnerships and sole proprietorships to either 15% or 20%.  Most of what I read indicates this could be a big "win" for most private practice docs/dentists as most if not all income could be handled on a pass through basis.  If I understand this correctly, this would limiting exposure to income taxes and even social security and medicare taxes?  This could result in a drop of one's federal tax bill by 50% or more depending on income.  Thoughts?

     

  • #2
    Its not worth your time to even consider considering any implications. Until something happens everything is worse than a pipe dream. Every day that goes by makes it less likely to happen.

    I wouldnt waste any time until there is some kind of bill in the works and approved. They havent even got their healthcare thing through yet, which is an absolute prerequisite or else there wont be any room for a tax break.

    Comment


    • #3
      That's the trouble with the trump plan, at least with corporate tax.  It would seemingly allow many to dramatically reduce their taxes by simply reorganizing.  If that became the case, virtually everyone would pay themselves less salary and just take everything as a distribution.

      I think it's more likely that the corporate rate could indeed actually drop, but the dividend rate etc. would have to necessarily increase to avoid this sort of behavior.

      However, if we actually end up being given some huge tax relief like this, then great.  It's just too good to be true, that's all....

       

      Comment


      • #4
        for what speculation is worth,  this is my memory/understanding of the last corporate and income tax rate cuts from the '80s:

        Reagan income tax cuts---------> docs form LLC and S-corp------> rates rise ---------> makes pass through ineffectual.

        the greatest difference in this decade, is that the majority of docs are now employed.

        Comment


        • #5
          Kansas tried this in an extreme fashion by eliminating state income tax on LLC/S-corp, promising explosive growth and increased revenues.  Instead, there was an explosion in LLC's with flat growth and revenue fell off a cliff.  This led to slashing funds for schools to such a degree that the state was successfully sued for failing to meet the state constitutional duty to provide public education.  Be careful what you wish for...

          Comment


          • #6




            Kansas tried this in an extreme fashion by eliminating state income tax on LLC/S-corp, promising explosive growth and increased revenues.  Instead, there was an explosion in LLC’s with flat growth and revenue fell off a cliff.  This led to slashing funds for schools to such a degree that the state was successfully sued for failing to meet the state constitutional duty to provide public education.  Be careful what you wish for…
            Click to expand...


            Doesn't bother me, as long as it means I pay less tax.   :lol:

            Comment


            • #7
              Be careful what you wish for, Craigy. Maybe lower taxes leads to huge budget cuts which means Medicare and Medicaid funding goes down, which slashes reimbursement even more... If you've ever seen Charlie Wilson's War, this scene seems appropriate. Especially that last statement.

              https://youtu.be/HoMLl9WYqgY

              Comment


              • #8
                I think it will massively favor multi-billionaires, and have no impact on physicians

                Comment

                Working...
                X