Donald Trump

Trump Confirms US Withdrawal From Trans Pacific Partnership

Westchester NY accountant Paul Herman of Herman & Company CPA’s is here for all your financial needs. Please contact us if you have questions, and to receive your free personal finance consultation!

By Tax News

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President-elect Donald Trump has confirmed that, during his first day in office, he will withdraw the United States from the Trans-Pacific Partnership (TPP) trade treaty.

In a short video on YouTube, he said that he would immediately “issue a notification of intent to withdraw from the TPP – a potential disaster for our country. Instead, we will negotiate fair, bilateral trade deals that bring jobs and industry back onto American shores.” The decision was expected, but perhaps not as one of the first executive actions “he would take on day one.”

Covering some 40 percent of the global economy, TPP was signed in February this year by Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam. Approximately 86 percent of tariffs on industrial goods will be eliminated if the agreement enters into force.

With TPP in doubt, China has been pushing for a completion of negotiations for the Regional Comprehensive Economic Partnership (RCEP), as part of its longer term objective to oversee the formation of a wider Free Trade Area of the Asia Pacific.

While it is unlikely to have the same level of market access benefits as TPP, RCEP aims to bring together the existing free trade agreements of China, Japan, South Korea, India, Australia, and New Zealand with the Association of Southeast Asian Nations (ASEAN) into a single enhanced comprehensive agreement. ASEAN comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam.

Paul S. Herman CPA, a tax expert for individuals and businesses, is the founder of Herman & Company, CPA’s PC in White Plains, New York.  He provides guidance and strategies to improve clients’ financial well-being.

Trump dumps 0% tax-rate proposal

By Bankrate

Westchester NY accountant Paul Herman of Herman & Company CPA’s is here for all your financial needs. Please contact us if you have questions, and to receive your free personal finance consultation!

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When Donald J. Trump issued his original tax plan in September of last year, the then-candidate for the Republican presidential nomination promised that some Americans wouldn’t owe any tax at all.

In a speech Monday before the Detroit Economic Club, the now nominee erased that no-tax option.

Original plan had a 0% rate

Trump’s original proposal called for 4 tax brackets, ranging from 0% to 25%.

“If you are single and earn less than $25,000, or married and jointly earn less than $50,000, you will not owe any income tax,” Trump proclaimed last year. “That removes nearly 75 million households — over 50% — from the income tax rolls.”

His new plan would put some of those folks back on the Internal Revenue Service’s radar.

Fewer brackets, higher tax rates

Trump, apparently in a sign of Republican Party conciliation and economic reality, has revised his tax plan to follow the tax rates and income brackets included in the House Republicans’ tax reform plan.

That proposal, backed by Republican budget guru and current House Speaker Paul Ryan, calls for 3 individual tax rates: 12%, 25% and 33%.

Trump’s 0% tax rate is gone.

Still, the Republican candidate told his packed house at the Detroit event that “many American workers” will find “their tax rate will be zero.” He’s basing this on a proposal for higher standard deduction amounts that was included in a GOP tax reform plan released in June.

“This, in effect, creates a larger 0 percent bracket,” the Republican tax plan says. “As a result, taxpayers who are currently in the 10-percent bracket always will pay lower taxes than under current law.”

Reaching out to parents

Trump has offered another new tax proposal that takes aim at Democratic opponent Hillary Clinton and her lead among women voters.

He wants to allow parents to fully deduct from their taxes the average costs of child care spending.

Clinton has proposed capping child care costs at 10% of a family’s income. The former secretary of state also supports a tax credit of up to $1,200 for adult family members who care for their aging parents.

Deficit question lingers

Trump’s speech to the Motor City gathering dealt with broad tax policy generalizations, as is generally the case for such talks during an election year.

He did promise, though, that “in the coming weeks, we will be offering more detail on all of these policies.”

Those details should tell us whether his new tax plan will be less costly than the nearly $10 trillion estimate that bedeviled his original proposal. Some Trump surrogates have suggested the new figure will be in the $3 trillion deficit range. Bankrate will let you know if that lower deficit amount is correct, as well as what’s in the other new Trump tax-plan specifics as they are announced.

Paul S. Herman CPA, a tax expert for individuals and businesses, is the founder of Herman & Company, CPA’s PC in White Plains, New York.  He provides guidance and strategies to improve clients’ financial well-being.

$5M ‘reward’ for Trump tax return

 

 

 

By Bankrate

Westchester NY accountant Paul Herman of Herman & Company CPA’s is here for all your financial needs. Please contact us if you have questions, and to receive your free personal finance consultation!

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What are Donald Trump’s tax returns worth? $5 million to one curious rich person.

An anonymous individual has offered to donate that amount to a veterans’ charity if the presumptive Republican presidential nominee will release his tax returns.

The inquisitive donor, who wants to keep his identity private, reportedly will even let The Donald choose the charity.

Nonpartisan tax curiosity

The high-dollar effort to get a glimpse of Trump’s 1040s was announced by David Brock, a political operative and Hillary Clinton backer. However, the person willing to pay for the tax revelation is a member of the Grand Old Party, according to Brock.

“He’s an old-fashioned Republican who thinks this is about character and wants to ensure that the Republican delegates next week know what they’re getting into when they nominate Donald Trump,” Brock said of the donor.

Running out of time

Brock’s mention of the GOP convention, which kicks off Monday, July 18, in Cleveland, is important. The donor wants Trump’s taxes in the open before then, so his $5 million offer expires on Friday, July 15.

Too bad. It’s not my money, but the offer should be valid through the Nov. 8 general election.

Republicans who will officially choose their presidential candidate next week aren’t the only ones who deserve to see Trump’s taxes. All American voters regardless of political affiliation should see that Trump follows tax laws.

What we could learn

The tax filings could give us an idea of just how Trump makes his self-proclaimed billions.

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Or whether he’s not making as much as he says. Records from the New Jersey Division of Gambling Enforcement in connection with Trump’s Atlantic City operations show that Trump used tax breaks in 1978 and 1979 to arrive at earnings losses of $3.8 million, meaning he owed no taxes.

We also would get a look at what type of tax-saving strategies he employs and whether he is as hugely generous himself when it comes to charitable donations.

IRS audit excuse

Trump continues to say he won’t release his returns, which are under Internal Revenue Service audit, until the tax agency completes its examination. That’s his right.

But it’s also a diversion. Richard Nixon opened up his filings for public inspection when he was under IRS audit as president.

Maybe Trump will release his tax returns from the Cleveland convention podium. That certainly would make the event more exciting than is already predicted, but I’m not holding my breath.

In fact, I suspect that even, or especially, if he makes it to the Oval Office, Trump will keep doing things his way, which means keeping his tax returns secret.

Paul S. Herman CPA, a tax expert for individuals and businesses, is the founder of Herman & Company, CPA’s PC in White Plains, New York.  He provides guidance and strategies to improve clients’ financial well-being.

Trump’s ‘amazing’ tax plan is nothing new

Westchester NY accountant Paul Herman of Herman & Company CPA’s is here for all your financial needs. Please contact us if you have questions, and to receive your free personal finance consultation!

By Bankrate

Donald Trump says his new tax plan will cost him a fortune. Why don’t I believe that?

The Donald today released his proposal to overhaul the tax code. He has some interesting ideas.

Most of them, though, have been proposed, and a few were even implemented before with little success.

Fewer brackets, lower rates, less deductions

Trump wants to eliminate federal income taxes on individuals earning less than $25,000 and married couples earning less than $50,000.

At tax filing time, according to Trump, taxpayers under these filing thresholds would “get a new 1-page form to send the IRS saying, ‘I win.'”

Everyone else would face tax rates of 10%, 20% and 25%. Trump’s new top tax rate, which would replace the current 39.6% rate, would apply to single filers making more than $150,000 and married couples with adjusted gross income of $300,001 and above.

“With this huge reduction in rates, many of the current exemptions and deductions will become unnecessary or redundant,” says Trump.

Folks falling into the 10% bracket will keep all or most of their current deductions. At the 20% bracket, taxpayers get to keep more than half of their current deductions. The top tax rate filers will keep fewer deductions.

This looks to be very similar to the existing itemized deduction phaseouts already in place.

And even The Donald trembles a bit when it comes to cherished tax breaks. Charitable giving and mortgage interest deductions remain unchanged for all taxpayers in the Trump tax plan.

Businesses and wealthy benefit, too

Trump is proposing lowering the corporate tax rate from 35% to 15%. This would make international companies more competitive globally, he says.

But Trump wants to make sure that the lower rate doesn’t just apply to larger companies. Under the current tax code, income earned by freelancers, sole proprietors, unincorporated small businesses and pass-through entities are taxed at their personal income tax rates, which could be as high as 39.6%.

Under the Trump plan, a new business income tax rate within the personal income tax code will match the 15% corporate tax rate.

Plus, there is no estate tax in Trump’s tax world. I’m sure his kids are thrilled about that provision.

Losing loopholes to pay for a simple tax plan

To offset all these cuts, Trump is relying on the elimination of most tax deductions and loopholes.

As noted earlier, many individual tax breaks are phased out as people earn more. And since under the current tax system, it’s mostly richer filers who itemize and use many of these tax breaks, they would indeed pay more of a tax price.

But leaving the mortgage interest deduction alone, while a smart political move, keeps one of the more costly individual tax breaks in place.

True to his slam on hedge fund managers whose earnings, characterized as carried interest, are taxed at lower capital gains tax rates, Trump does propose that some of them pay more taxes. But not all of them.

Trump’s plan targets carried interest for “speculative partnerships that do not grow businesses or create jobs and are not risking their own capital.” Other such arrangements would still enjoy the lower tax rates.

So hedge funds that are deemed good will still get favorable tax treatment. Got it. I can’t wait to read the regulations in this area.

Trying trickle-down again

Basically, though, much of the Trump plan relies on a reworking of trickle-down economics.

The success of the plan is based on economic growth that the Republican presidential nominee front-runner says will average between 3% and 6% a year. That, he contends, will help everyone.

“I actually believe they’ll do better, because the economy will grow,” Trump said, with “they” being middle-class taxpayers. “It’ll grow rapidly, and we’ll have something very special. If we have more than 3(%), these numbers are really spectacular.”

The devil, as they say, is in the details. And right now the details look very similar to ideas that have been floated in past and even this year’s presidential campaigns.

In fact, some analysts have noted that Trump’s proposal offers even more cuts for the rich than does the plan offered earlier this year by former Florida Gov. Jeb Bush, the establishment candidate that Trump loves to trash talk.

The reality is that Trump, ever the showman and salesman, is taking old ideas that haven’t worked and dressing them up as a shiny, new, “amazing” tax code. What’s really amazing is that he keeps getting away with such stunts.

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