U.S. President Donald Trump met with business leaders, including Corning CEO Wendell Weeks, Johnson & Johnson CEO Alex Gorsky, and Dell CEO Michael Dell, in the Roosevelt Room of the White House on January 23, 2017.  (Kevin Lamarque / Reuters)

We don't usually talk about politics here at the Rules of Thumb blog, and we are not talking politics now. What this post is about are changes that could affect our readers--CPAs, accountants, business owners, and individuals interested in personal finance--now that the reins of the US have been handed to Donald Trump as president.

Trump Promises Corporate Leaders Lower Taxes and Fewer Regulations

In a recent meeting with corporate leaders, President Trump promised lower taxes and fewer restrictions on businesses. We feel this vital information has a definite place on the Rules of Thumb blog from MoneyThumb.

In this article from The Atlantic, reporter Bourree Lam states that President Trump met with 12 business executives from some of America’s largest companies—including Johnson & Johnson, Ford, Dell, U.S. Steel, and Dow Chemical—for a “listening session.” Trump is quoted as saying, “I think we can cut regulation by 75 percent, maybe more.". As for the reduction of the corporate income tax rate—currently 35 percent at the federal level—Trump said “we’re trying to get it down to anywhere from 15 to 20 percent.”

In addition, Trump has reportedly charged the group at today’s meeting with formulating a plan that would stimulate the American manufacturing sector. Andrew Liveris, the CEO of Dow Chemical, told reporters after the meeting that Trump gave the group 30 days to complete the task.

The video above from C-Span covers the meeting with business leaders and President Trump, and also on their site you can read the full transcript of the meeting. In addition, you can watch this video of what the business leaders thought of the meeting with President Trump after it was over--Dow Chemical CEO and Chair Andrew Liveris and Ford Motor Company President and CEO Mark Fields spoke briefly with reporters following their meeting with President Trump at the White House.

As we stated in the beginning of this post, we are not getting political. In fact, we have striven to report just the news without personal opinion. However, we will say that this is a fascinating time in US history and we will keep you informed of news involving personal finance, accounting, and small business when we feel it affects our readers. Have a great weekend!

The post Trump Promises Corporate Leaders Lower Taxes and Fewer Regulations appeared first on MoneyThumb.

(image courtesy of Washington Times)

Here at the Rules of Thumb blog from MoneyThumb.com we usually don't get into politics, but with the election of a new President of the United States in the form of Donald Trump, today we will make an exception. The reason we feel strongly about posting this particular blog today is that Forbes has such a great article that concerns all Americans, but especially the accounting and finance field, both on a personal and business level, since the changes to finance and taxes predicted with Donald Trump as our new president will effect your clients.

The article is called How President Trump Will Affect Your Wallet by Forbes Contributor Rob Berger, and we consider it a must-read so we can be prepared for coming changes to our financial outlook and taxes. Below are a few important highlights from the article:

President Trump's First 100 Days

• Taxes--Federal income taxes will come down significantly for everybody. In addition, the tax brackets will be reduced from seven to three. For joint returns, here are the three brackets:
  • Less than $75,000: 12%
  • More than $75,000 but less than $225,000: 25%
  • More than $225,000: 33%
  • Trump’s tax plan increases the standard deduction to $30,000 ($15,000 for single filers). The personal exemption will be eliminated. And importantly, itemized deductions will be capped at $200,000 ($100,000 for single filers). These changes will benefit the working-class, while potentially increasing taxes (although at a lower tax rate) of the wealthy by capping itemized deductions.In short, every working American’s wallet will get fatter under Trump, with hedge fund managers the one exception.
• Child Care--Trump has proposed an above-the-line deduction of up to $5,000 for childcare of children under age 13. An above-the-line deduction doesn’t require a taxpayer to itemize. These deductions reduce adjusted gross income. The deduction is unavailable to high income earners.
  • For families making $62,400 ($31,200 for single filers), Trump would offer a childcare rebate through the Earned Income Tax Credit.
  • Families could establish a Dependent Care Savings Accounts with an annual contribution limit of $2,000. For low-income families, the government will provide a 50% match up to $1,000 a year. Interestingly, funds still in the account when the child turns 18 could be used for educational expenses.
• Healthcare--Trump has made clear that he will seek the repeal of the Affordable Care Act. He wants to replace the ACA with new reforms, according to Trump’s Healthcare Reform White Paper. These reforms include the following:
  • Allow health insurance to be sold across state lines
  • Allow individuals to fully deduct health insurance premiums
  • Allow individuals to use Health Savings Accounts (currently use is restricted to those with high deductible health insurance plans)
• National Debt--Trump has made clear that he will seek the repeal of the Affordable Care Act. He wants to replace the ACA with new reforms, according to Trump’s Healthcare Reform White Paper. These reforms include the following:
  • Allow health insurance to be sold across state lines
  • Allow individuals to fully deduct health insurance premiums
  • Allow individuals to use Health Savings Accounts (currently use is restricted to those with high deductible health insurance plans)

These are major highlights from the Forbes article, How Will President Trump Affect Your Wallet. We hope this helps ease any anxiety you might be feeling with the election results. As they always say, knowledge is power and now you have something solid to refer to when it comes to changes in your finance and accounting issues under a new US regime.

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