Many economic experts have predicted that the US economy will experience an economic growth since Donald Trump has been elected as president of the USA. However, one thing is for sure; no economic recovery can take place if the country has a lot of disparity in wealth. This means that poor and middle class Americans are suffering the most with the poor being the main sufferer. The richest one percent of the nation is enjoying their best time in a century with this kind of economic system. For this reason, it is reasonable to expect that economic growth since trump's election will continue.
The key to economic revival is tax cuts and the reduction of regulations that cost businesses money. These policies have already been discussed by President-elect Trump when he was interviewed on Fox News. He also spoke about his plans during the campaign trail, but did not fully elaborate. Now, with his impending job performance, we are getting to see what his actual plans are. As of now, his main agenda includes tax cuts, economic stimulus, infrastructure investment, and deregulation.
When tax cuts are rolled back, it will surely mean less income to the rich, but more revenue for the government. With tax cuts, businesses will start growing again, thus creating more jobs. And with more jobs, more income will be generated which will lead to economic growth since trump mentioned all of this during his election campaign. And the more the government earns, the more funds it will have to invest back into the economy.
With that said, there will be less tax revenues, but more economic growth since government spending will be brought back to its expected level. It will be used to create jobs, increase infrastructure, and lower taxes. And with that said, it is expected that there will be economic growth since the government will be gaining money. It is really that easy. Just lower taxes, raise investments and spend money!
And what about businesses? How can they still improve productivity if the government keeps on slashing their corporate taxes? Well, if businesses don't invest in the latest technology, equipments, and business strategies, then they won't be able to keep up. This means businesses will have to find alternative routes to generate their revenue. And these routes may not be lucrative – which is just one of the reasons why business owners are now looking for ways to reduce their tax burden.
The solution to this problem is to consult with a pro. Indeed, a pro has the expertise to know which economic programs are best to support small businesses. His/her advice may prove to be invaluable because the business community is very sensitive to the political climate. With that said, any suggestions the advisors give would need to be well-thought of and thoroughly analyzed so that they will actually benefit the businesses that will implement them.
How about simplification of the tax system? Cutting taxes is one thing, but making it easier to pay your taxes . . . . . . is certainly another thing entirely. In fact, economic experts believe that a simpler tax system will help boost economic growth since it lowers the barrier of taxation for people who make a high income. It also encourages businesses to hire more workers.
Fortunately, there are now lots of tax planning professionals to help us with all these issues. If you are willing to invest some time to study the available options, it won't be hard for you to choose the best way to proceed. Best of all, you don't have to worry about going broke! As long as you play by the book, you should be able to manage to live well. Just make sure that you always pay close attention to how you spend and you'll never go wrong!