First impressions of Tax Cuts and Jobs Act

FOR ME AND MY CLIENTS:

I calculated my own taxes under the tax reform proposal and it’s not a tax cut for me. It’s a wash. I don’t see tax cuts for my middle income self-employed clients but I haven’t taken the time to do calculations yet.

New Jersey clients will be hurt by the restrictions on deductibility of taxes.

FOR MY BUSINESS:

There is a tax planning business opportunity for me to move more small business clients’ out-of-pocket medical expenses to tax-free employee benefit plans – Supplemental Insurance, Health Reimbursement Arrangements, Health Savings Accounts or Flexible Spending Accounts.

FOR THE RICH:

There are big tax cuts for those with incomes over $200,000.

Anybody worth more than $5 million benefits from the estate tax changes.

CONCLUSION:

In the end, I think we have to call this tax bill plainly what it is: a tax cut for the rich.