Taxing Policies
Let’s assume you are the coach of a football team. You develop a skilled passing quarterback with a set of fast, sure-handed receivers. And you’re doing well in your games.
Then all of a sudden, a new league commissioner takes over, and changes the rules for the game—no more forward passes, only runs from scrimmage. You spent time developing things based on rules allowing passing, and now you have to pivot to something else.
Then, just a few years later, yet another new league commissioner takes over, reinstates the forward pass, and prohibits runs from scrimmage. You’re wondering as the coach how you can possibly succeed or excel when they keep changing the rules.
That’s what’s actually happening today…except instead of a coach of a football team, you’re the owner of a business. And instead of rules regarding the forward pass or runs from scrimmage…we’re talking about the federal tax code.
The tax laws were changed in 2017…but they were only in place for a limited number of years. Those so-called Trump Tax Laws will expire within the next year unless they are extended by Congress. And we won’t know how that will turn out until after the November general election…that’s when we should know who the president will be, and who will have the majority in Congress.
In the meantime, good luck planning for business expansion…or for that matter, planning in your own financial life. If income tax laws change, you may have less money available soon. So you’re going to be cautious now, stifling your growth or the growth of your business, because you have no idea what’s ahead given how wildly and widely the pendulum shifts after elections.
If this were a football game, we wouldn’t stand for it. But apparently when it comes down to governance, we’re OK with it?
