How Tonight’s Election Could Impact Your Tax Bill
This time last year President Trump introduced the Tax Cuts and Jobs Act. Doug Claussen, a partner and CPA with K-Coe Isom says tonight’s elections could impact your tax bill in the long-term.
“There are provisions in the tax reform that were considered temporary, meaning they were going to expire in 2025,” Clausen told Tyne Morgan at the 2018 MILK Business Conference. “There's been a bill that would make many of those provisions permanent.”
One of the most significant of those provisions is the section 199A pass-through entity deduction, which gives dairy producers a 20% deduction against ordinary income.
Representative Kevin Brady, the chairman of the House Ways and Means Committee says that bill, which they’re calling tax reform 2.0, will be stalled out until after the election.
In addition to that bill, President Trump is proposing a 10% tax break for “middle income Americans” which is also stalled out until after the election, Clausen said.