I wish I could be so optomistic about the intentions of our current economic situation. Not to get political, but it seems that much of what is happening favors the big guys, and not those of us in the bottom or middle. In Hawaii we are already having issues with big hotels wanting to close Airbnbs, and it's hard for me, personally, to believing that lobbiest in Washington or locally are looking out for MY welfare as a small business. Most of the breaks are going to the richest of the rich, and I'm afraid that will never be me!
If the removal of deductions *is* an issue, the time to speak out is before it becomes finalized. After the fact we are only victims.
But that said, here is what I saw that concerned me. I am quoting this exactly how it was presented on our Hawaii Big Island Facebook group (caps and all 🙂 😞
"As someone who has been helping prepare income tax returns for indivudal business persons since 1994, I just want to mention a few key points for anyone out there who may be unimformed about the new tax reform that has passed the house. This is NOT a political post, just information. Under the new plan, the tax burden will shift more heavily to the middle class, PARTICULARLY the individual business owner. How? All business expenses are, in effect, removed. No longer will items such as business cards, advertising, continuing eduction, travel expenses, business-related mileage, business phone, subscription service, accounting software, legal software, home office, tools, uniforms, and office supplies, be deductible. For example: Currently an independent contractor carpenter who makes $30,000 and has $5000 in business expenses pays tax on $25,000. Under the new law he would pay tax on teh full $30,000. That would increase his tax burden by about $1000. There are many features of the new tax bill that are unfair to the middle class, but I feel this one is particularly hurtful to families and will destroy many small businesses. I have called my senators on this matter, and urge anyone with a voice out there to make yourself heard on this matter. If you don't feel so moved, at least MAKE AS MANY BUSINESS PURCASES AS YOU CAN BEFORE DECEMBER 31, 2017."
I do know that removing the insurance mandate is in the Senate version, which will almost definitely cause health care to skyrocket for those of us who purchase on the ACA (due to more healthy people not signing up). We are also losing the state tax deduction which greatly impacts those of us in states with income tax -- basically we will be taxed by the state and then taxed by the feds on that same full amount. 😞