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This week, get some insight on tax laws in relation to the upcoming presidential election. Tom Wheelwright joins us for Episode 6 of the Grow My Accounting Practice Podcast!
Tom Wheelwright, CPA and CEO of ProVision Wealth (Tempe, Arizona), is a leading tax and wealth expert, speaker, best-selling author of Tax-Free Wealth, and a Rich Dad Advisor/Speaker for Robert Kiyosaki, who wrote Rich Dad Poor Dad. He is best known for making taxes fun, easy and understandable, and specializes in helping entrepreneurs and investors build wealth through practical and strategic ways that permanently reduce taxes. He is the Founder of WealthStrategyU, and has been featured in Accounting Today, Investors Business Daily, Deseret News National, and as a guest on the ABC Radio News, AM870 The Answer, Real Estate Guys Radio Show, Money Radio 1510 Business for Breakfast, AZTV Morning Scramble and more.
When you look at all these presidential proposals, you have to think “which of these proposals could actually happen?”
The tax plan is a way to influence people’s behavior. The tax law is our primary driver of economic, social and energy policy in the US and in all countries. It’s the incentives in the tax law that gets people to do things, that’s the driver of the policy. You take all those incentives out and you’re not just changing the tax law, you’re changing the absolute fabric of how the US would implement it’s policy in America. Where is the policy coming from?
Major concern: “Is my job going away because i’m not going to have tax returns to repair?” No, this is not going to happen.
Of all the presidential plans, Donald Trump has the best plan (in Tom’s opinion) . Trump is proposing to reduce corporate income tax rate across the board to 15%. Reduce the tax rate so it’s no longer efficient or effective to move money overseas.
It always comes down to “How do we pay for it?” Their will be winners and losers in this process.
Rule of thumb: if you get the tax rates below 30%, you’ve taken away the incentive and it reduces the benefit. If you put more money in investors pockets, they will do something with it… but what will they do with it?
Any expense can be deductible under the right circumstances.
To prepare for the upcoming tax changes, regardless of who wins the election, watch the debates and understand their proposals. Help your clients understand – look at the big picture rather than short term planning. Make sure you are working along with your bookkeeper and team of advisers so everyone is on the same page.
There will be no reform unless we have a willing house of reps, senate, and administration; all three have to work together.
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