Feel free to visit my website at http://www.davidasnydercpa.com and call me at 928-445-0104 x9 with any business or tax issues. Do any of you growing business need a Professional Controller a few times a week or month to help you grow your business? I offer a superior spectrum of business oriented services, including tax preparation, business valuations, financial statements, IRS representation, strategic planning, tax advice, and much, much more. Contact me to find out what I can do for you. Here are the small changes for 2016:
Social Security Tax Contribution Base Increases
The maximum amount of wages subject to Social Security tax increases to $118,500 in 2016, with no change from 2015.
Business Standard Mileage Rate Increases
The standard business mileage rate is 54 cents per mile, down from 57.5 cent per mile that applied for business driving in 2015. Remember that you can deduct the cost of parking and tolls in addition to the mileage allowance.
The Presidential election has brought up some possible changes to the tax code that could take effect in 2017 or may be deferred to 2018 depending on Congress. Also keep in mind that the new administration wants to eliminate Obamacare which does have some tax implications. However, it is likely that it would take some time to eliminate or change Obamacare and I would guess that those changes would not be necessarily retroactive to 2017, but we will see. Here is a summary of benefits of the potential tax changes:
- Trump’s tax plan would substantially lower individual income taxes and the corporate income tax
and eliminate a number of complex features in the current tax code.
- Trump’s plan would cut taxes by $11.98 trillion over the next decade on a static basis. However,
the plan would end up reducing tax revenues by $10.14 trillion over the next decade when accounting
for economic growth from increases in the supply of labor and capital.
- The plan would also result in increased outlays due to higher interest on the debt, creating a ten-year
deficit somewhat larger than the estimates that you may have seen.
- According to the Tax Foundation’s Taxes and Growth Model, the plan would significantly reduce
marginal tax rates and the cost of capital, which would lead to an 11 percent higher GDP over the long
term provided that the tax cut could be appropriately financed.
- The plan would also lead to a 29 percent larger capital stock, 6.5 percent higher wages, and 5.3 million
more full-time equivalent jobs.
- The plan would cut taxes and lead to higher after-tax incomes for taxpayers at all levels of income.
(Tax Foundation, Alan Cole, September 29, 2015)
If you need further information on these tax changes, please call me at 928-445-01014 x9 or contact me at firstname.lastname@example.org.
David A. Snyder CPA, PLLC www.davidasnydercpa.com
325 Montezuma Street, Prescott, AZ 86303 (928)445-0104 Ext. 9
Fax (928) 717-1076 email@example.com