Next steps from the proposed presidential tax plan
We now know the results of the election, but the full effect of this decision remains to be determined. If you’re looking to focus on the tax plan specifics Trump has expressed and its implications, you can review our summary of the proposal last week.
The truth is we’re waiting to see the next steps to judge the results of Trump’s plan. It’s just too early to say anything right now.
We do know there are two visions of the future; two diverging thoughts on where we’ll be economically based on Trump’s proposals.
What economists are saying: if Trump is capable of implementing all of his plan, it will create a big economic downturn.
We’re talking about a lower taxable income for the government. It’s just not possible to support the government in the manner that we’re seeing positioned: doubling infrastructure spending without cutting anything. Trump’s tax plan ensures lower tax rates at every income level, without properly compensating for those losses in government funds with the intended tax break reductions. Eyes are on some of the big programs (Medicare, Medicaid, and Social Security) as to whether they’ll continue to be supported, but without any current plans to remove or reduce them.
In particular, the implications on international trade are a major concern. With limitations on trade, cash flow will be constrained as companies and consumers adjust to the new regulations and changes in costs. This could be good for the markets but bad for the economy.
We encourage each of our fellow Dallas and US-based companies and business owners to get to know the potential implications of the proposed tax plan and continue to monitor the conversations as they unfold in the coming months.