This provision of the Trump plan is an incredible boon to the Gig economy.
Freelancers, Independent Contractors, and the Gig worker will be treated as a business and taxed as a business; at a maximum of 15%.
Non-Corporations and the Gig Economy
This provision of the Trump plan is an incredible boom to the Gig Economy. Freelancers, Independent Contractors, and the Gig worker will be treated as a business and taxed as a business; at a maximum of 15%. Imagine, a Gig worker making $100,000.00 a year net. Instead of a marginal tax rate of 28%, it would be 15% maximum. If you think the Gig economy is big now, this tax decrease will make everyone want to go towards having a business gig. Currently, there are over 27 million small businesses in the US with more than 75% having no employee.
Estate Tax Elimination
Estate tax elimination will make the development of legacy wealth easier to implement, but it is a minor change to the Treasury in term of taxes. Children, ex-wives, and philanthropy eliminate a lot of inter-generational accumulation already.
The IRS Data Book 2016 shows 36,000 estate tax returns filed in the fiscal year 2016 with revenue collected of just shy of 20 billion dollars or about ½ of one percent of the IRS collections for the same period.
Personal Income Tax Rates
Did you know: personal income tax when introduced in 1913 was designed only to affect the top 1% of citizens? In Fiscal 2015, there were over 150 million returns filed for Fiscal 2016 with more than 120,000,000 people paying income taxes or about half of the adults in the country.
Personal rates are proposed to reduce to the following table:
Make sure to keep an eye on your email inbox for next week's conclusion to this series. We will be discussing the unanswered questions surrounding the Trump Tax Plan.