Tax Law. Where is it Headed?

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Now that the transfer of power has occurred and our government is in the control of the Republican Party we are expecting significant tax law changes. There is significant support for reducing corporate tax rates and discussion of reducing the number of individual tax rate tiers to also provide individuals with some level of tax relief. The million dollar question I am constantly asked is how low will tax rates go? Well outside of simply restating the promises of the current administration that question is not quite so simple to answer just yet; it will only become clearer as the budget process ensues. The administration’s budget as presented seeks out significant increases in national security measures such as increasing our military standing, and cuts to various federal agencies, changes to healthcare while maintaining the current level of spending for Medicare and Medicaid, and let us not forget the calling for measures to reduce the deficit. How it all plays out in the House of Representatives and the halls of Congress remains to be seen. So what is the answer to the million dollar question, How low will tax rates go? I expect that tax rates will be reduced, how low, we will see as we carefully monitor the government budgeting process in action.

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