When I wrote my last post about the GOP tax bill last week, I thought I’d have more to say about the new tax law.
I’m going to make a few changes here.
First, I want to take a moment to highlight some of the new provisions that the GOP bill will require the largest business owners to pay in addition to the income tax they already pay.
Second, I’d like to address one of the most controversial parts of the GOP plan.
The provision requiring large corporations to pay an additional 10 percent tax on profits that exceed $10 million annually.
I’ll take a closer look at that later in the piece.
But first, I’m glad you’re here.
I don’t like talking about tax reform.
It’s too hard.
It’ll be too confusing.
And I’d hate to hear you complain about the plan.
If you’re a small business owner and you’re not in a position to know exactly how your taxes will be affected, there are a few things you can do to prepare for the future.
The Tax Policy Center estimates that by 2025, roughly one-third of small businesses will lose their ability to deduct their state and local taxes, which would result in a $1.3 trillion loss in tax revenue over the next decade.
For some small businesses, that’s a significant amount of money.
As I’ve written before, it’s not a lot of money, but it’s a lot more than the $200 billion in lost revenue the Republican tax plan will cause for small businesses.
But if you’re one of these small businesses that is already in a tough spot, you might want to read on.