The election promises to bring more tax ramifications than any other election in recent history.
It presents an opportunity to rethink the tax code, potentially making it more pro-growth by moving away from income-based taxes towards consumption-based models. Such reforms could increase savings and capital investment, fostering a more robust economy.
Yet, some politicians appear to be weaponizing tax policies against entrepreneurs and the wealthy, reflecting a growing populism that views inequality and success as problems to be solved through higher taxes.
The stakes are incredibly high for small business owners. The outcome of this election will shape tax policies for years to come, and it's imperative for entrepreneurs to stay informed and engaged in the political discourse surrounding tax policy.
But first, let's take a step back to understand how we came to this point in time.
Related: Finally, Tax Season is Over. Or Is It? Here are 5 Things You Need to Do All Year to Reduce Tax-Season Stress.
In 1913, the United States introduced the income tax, initially targeting only a very small portion of the population. It was truly a tax on the wealthy elite. It wasn't until 1944 that the U.S. expanded the income tax to wages more broadly, but even then, it was largely on income that exceeded normal living expenses.
Fast forward to today, and income tax has become a routine part of American life. While income taxes were rising, so were corporate taxes. In fact, less than a decade ago, the U.S. had the highest corporate tax rate in the industrialized world.
The 2017 Tax Cuts and Jobs Act had a significant impact on........