President Trump’s Tax Plan: Major Flaw the S Corp
Trumps Tax Plan held out to one striking exclamation to this writer, he’s comment on S Corps, but first a quick overview of what an S Corp is compared to Regular Corporations.
S Corps are local Corporations that are Not Allowed to have Foreign Stock Holders unlike Regular Corporations which can have anybody any where in the World as an Investor (like the Saudis or the Chinese). S Corps also only get taxed once on dividends (Profits withdrawal from Stocks) unlike other Corps which get Taxed Twice on dividends, giving S Corps a strong advantage over regular Corps to draw in savvy local investors.
President Trump’s Tax Plan involves a 25% Corporate Tax Cap for S Corps (down from an Approx. 35%) which will surely make S Corps far more Competitive within the Global Market, but with also only allowing US Citizens to hold Stock in them will keep more Corporate Profits in American Pockets. If the S Corp becomes the Dominant American Corporate Type we will see less foreign influences like China and the Middle East Oil Men involved in the US, and the S Corp will further incentivize that trend due to local investors getting more profits due to only being taxed once and not twice, which could be a long term death blow to the Globalist Finical Onslaught.
However the Corporate Tax Rate will be below 20% while the S Corp and other Small Business Types will be up to a 25% Max. This writer personally wishes that S Corporations have the same or a lower tax rate than regular Corporate Taxes so that S Corporations can keep more money in America and allow Americans to dominant American Business without the need or constraints of foreign investors.
All and all President Trump’s Tax Plan is far better than all the other plans and is claimed to simplify the system, which anybody with half a brain knows is needed, and also lowers the burdens on low income people. However this plan gives Regular Corporate Types a strong advantage over S Corps, and S Corps are 100% American Owned Corps which allow for more money to stay local and with more profits to boot and incentivizing that, and that is the Major Flaw I see in this Tax Plan.
by Randy Ross