Major Federal Tax Changes on Horizon, Including Corporate Rates

 

Federal Tax Changes pic
Federal Tax Changes
Image: forbes.com

Samuel Brice Hall is an experienced presence in the Atlanta financial world and directs investor relations at Piedmont Private Equity, LLC. Among the areas in which Samuel Brice Hall has extensive experience are real estate development, long term investments, and tax mitigation strategies.

As reported in Forbes, the tax rate reductions that President Donald Trump campaigned for hold the promise of engendering new corporate strategies. Among the changes proposed is a cutting of corporate taxes from 35 percent, one of the highest levels worldwide, to 15 percent. This decrease would potentially bring the United States to the level of countries with extremely low taxation rates, comparable to those in Ireland and Switzerland.

One caveat to this is that virtually no US corporation pays the maximum tax rate, with a 2016 Government Accountability Office survey finding that, from 2008 to 2012, profitable large companies payed on average 14 percent in federal taxes. What is predicted to occur is that, as the official rates lower, tax shelters will decrease correspondingly and the government will still find ways to collect necessary funds for it to operate.

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