This Week in Business (08/31)
Updated: Sep 12, 2020
American politics are coming to the forefront as tensions and allegiances are beginning to formulate. Matters continue to get more trivial, petty and divisive as November nears and Autumn slowly sets in. Trump has countless groundless claims regarding mail-in voting, voting twice amongst other sentiments on the campaign trail.
If reelected, Trump’s Tax Plan will continue to provide breaks, credits, and cuts for certain people. His plan is broken simply in two sections: “Jobs” and “End Our Reliance on China.”
Under the Tax Cuts Job Act (2017) capital gains tax relief will be provided to businesses or individuals who qualify in “opportunity zones.”
The idea here is accelerate investment in economically distressed census tract areas. People in these areas typically earn no greater than 67% of the U.S. average income (ARC.gov)
End Our Reliance on China
To do so, Trump will first distribute unspecified tax credits for specific companies. Then, a 100% deduction will be rewarded to companies who bring manufacturing into the U.S.A.
This portion of the plan is aimed toward incentivizing pharmaceutical/robotics type industries to operate entirely in house. There has been no disclosure as to what types of companies qualify or the permanence of the 100% deduction.
Other potential plans include decreasing the capital gains tax from 20% to 15% and indexing the capital gains to account for inflation.
Indexing capital gains will play favorably for people who own majority stakes in stocks or real estate. To learn about the capital gains index process navigate here.
Overall, the political climate continues to soar to heightened temperatures while the seasons shift. Stay tuned in the WRIGHT corner for everything set to occur in these next months.