The federal tax reform plan proposed by President Trump includes the repeal of the federal estate tax, consolidation of income tax brackets, and changes to deductions. MWE Tax Partner Lance Christensen speaks to Bloomberg BNA’s SALT Talk Blog about what the reforms could mean for taxpayers overall, and at the state level.
Bloomberg BNA: A main goal of Trump’s plan is to simplify tax filing for individuals and families. He notes that there are over 100 individual income tax forms and 90 percent of Americans need help filing their taxes. As a CPA, what are your thoughts on this goal?
Lance Christensen: It’s true that most Americans need help filing their taxes. More importantly, they need help with their tax planning. The tax law is very complex today, so taxpayers need help not only with preparing their tax returns but with planning to minimize their taxes. I suspect that the tax reform that has been proposed both by President Trump and the House Republicans will simplify the tax law if it is enacted and will simplify the tax preparation for many Americans. However, for other Americans, it will add complexity—particularly for corporations and partnerships.