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An insight of upcoming Tax Reform

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During his entire presidential campaign, Donald Trump talked passionately about reforming the tax code of the United States saying that it could lead to economic growth. Now that the Congress is back from recess, Donald Trump has a chance to deliver on his promise. However, this is a move that has been undermined by lawmakers close to the president as well as his wealth advisors. Like any reform presented to the Congress, the devil is always in the details. With this reform, nothing more should be expected after the details of the reform were revealed through a single piece of paper by National Economic Council director Gary D. Cohn. Treasury Secretary Steven Mnuchin also participated in the drafting of this reform in April and was presented in bullet form. At the moment, the deal may seem too good for transfer taxes, businesses, and incomes. However, business people suggest that people should be cautious about what they are getting. This is the reason why people should ask specific questions such as what the deal means to them. Union Bank of San Francisco wealth strategist known as Jayne Hartley said that when it comes to taxes, most people are pavlovian. This is a scenario where people complain that they are paying a new tax. At the same time, they are relaxed when they hear have a tax cut.

With many tax policy meetings coming in the next few weeks, all that people can do is speculate. But the question that many people continue to ask themselves is what might happen with the new reforms. According to experts, federal taxes are likely to change. Going by what the president has suggested, he is focusing on income tax rates as well as business taxes. Todd Simmens works with a company known as BDO as a risk manager. Through his many years of experience with the Congressional Joint Committee on Taxes, he says that there are several possibilities with the tax reform. He also mentioned that the president is yet to give guidance on the way forward. However, the wealth expert says that it is not possible to experience a wholesale overhaul before 2018. He also speculates that should the deal reach middle next year, it is likely to be bogged down the midterms. At the same time, people should understand that tax policy is very complicated. It cannot be compared to the health care repeals and other simple policy issues in Congress.

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