Post by FUSION on Apr 29, 2017 9:58:18 GMT -5
Trump proposes tax cut for owner-operator businesses - James Jaillet | April 26, 2017
President Trump on Wednesday unveiled a tax cut proposal that would cap the tax rate for businesses who file their taxes through their owners’ personal income tax, such as owner-operator truckers, at 15 percent. The plan would remove the existing percentage brackets of 25, 28, 33 and 39.6 for higher-earning owner-operators.
It’s unclear how many single-truck owner-operator businesses would be affected by the tax cut, as many owner-operators already are in or below the 15 percent bracket.
However, the plan would also cut taxes for lower-income earners. Trump’s plan, according to a brief outline released by the White House, would double the individual deduction, meaning those earning less than $24,000 a year would pay no income tax and those making more than $24,000 wouldn’t pay any taxes on the first $24,000 earned. Other details on the plan were sparse. The administration says it is engaging Congress to flesh out full details and brackets.
Todd Amen, president and CEO of owner-operator financial services firm ATBS, said in a sample of 1,800 owner-operator clients, the average federal income tax rate was 10.8 percent. That indicates many owner-operators wouldn’t benefit from the 15 percent cap.
www.overdriveonline.com/trump-proposes-tax-cut-for-owner-operator-businesses/