Business Owners Could Benefit From Trump’s Tax Plan
SIOUX FALLS, S.D. – The Trump Administration Tuesday unveiled a new tax reform that could offer business owners some major relief.
The plan proposes a flat 15 percent business tax rate.
The current rate is at 35 percent.
“We kind of look at every dollar that comes in and how much goes out,” says Co-owner of Cliff Avenue Green House Heidi Teal.
Teal says her company’s financials are always on her mind.
“If you show any kind of profit you’re nailed at that 35 percent,” she says. “Even if it was a $10,000 dollar profit and 35 percent, that’s a chunk out of there.”
Right now, Teal says majority of their profits are going toward wages.
“When McDonald’s hires at a huge rate, I have to come up quite a bit.”
And that doesn’t include employee benefits.
“With all the taxes I have, I can’t give out a ton of benefits,” says Teal.
That’s why Teal says she’s happy to hear that she could be paying less in taxes in the future.
“If we did something like that then we have extra money and we can put that toward our employees, hiring, getting better employees, paying better; that would help tremendously,” says Teal.
“I think that’s the intent,” says Tim Ness with Ness Tax and Bookkeeping. “To help small businesses grow, to help them hire more employees and invest more equipment, and just to stimulate the economy a little bit more by investment in the private sector.”
Ness says businesses wouldn’t be the only ones benefiting from the tax reform though.
“The devil is in the details, but it sounds like the folks in the higher income scale will receive more income tax relief,” says Ness.
For individuals, the plan would shrink the number of tax brackets from 7 to 3, with the highest tax rate at 35 percent.
Currently the highest rate is at 39.6 percent.
Ness says it’s usually the upper class that is paying at that amount, so that’s where they will see some relief.
As for middle and lower class, Ness says they will likely be paying around the same amount as they do now.
He says a lot of people have been waiting to see a reform like this come out.
“Over the years more and more clients have expressed to me that they feel over burdened with taxation and I think most people would welcome the relief,” says Ness.
There’s still a question as to how the Trump Administration will pay for the plan amid concerns over the rising the deficit.
Officials cautioned the details are still being worked out, but said a boost in economic growth will help offset a growing deficit.