Curious as to what some of the recent tax terms and proposed changes actually are?
Below is a quick guide to the terms and concepts you'll be hearing over the next couple months as our country looks to understand and ratify some changes to the tax code. "Knowledge is power; information is liberating; education is the premise of progress." Kofi Annan
Corporate Tax Rate
The corporate tax is levied on the profits of C-Corporations and is essentially a 35% flat rate. The corporate tax rate in the United States is among the highest in the world and it is believed that companies are keeping profits overseas to avoid this tax. C-Corporations are non-pass-through entities which means they are subject to double-taxation. First, taxes are paid by the C-Corp at the corporate tax rate on profits. Second, shareholders and owners are taxed as they take those profits out as dividends.
Donald Trump is the President-Elect of the United States and with the House and Senate controlled by the Republican party there’s a good chance we may see some reform in the tax code. Based on some of the policy proposals that have been floated here is what we think will happen: