Tax Cut and Job Acts

Post TCJA Bonuses Were Mostly a Timing Shift

Post TCJA Bonuses Were Mostly a Timing Shift

Rather than a secular upward shift in workers’ compensation, private-sector bonus payments fell substantially in the first quarter of 2019, continuing a trend that began in the fourth quarter of last year. this is the classic pattern of a tax-motivated timing shift.

Are Tax Cuts Making The U.S. Trade Deficit Bigger?

Are Tax Cuts Making The U.S. Trade Deficit Bigger?

So far, President Trump has introduced tariffs on goods imports from the EU, Canada, Mexico and China. All of these countries have retaliated with tariffs of their own, and the EU has lodged a dispute at the World Trade Organisation regarding the tariffs on steel and aluminium. President Trump has just announced tariffs on a further $200bn of Chinese imported goods, and has rejected an offer from the EU to cut tariffs on automobile imports to zero if the U.S. does likewise. Battle is most definitely joined, and President Trump clearly thinks he will win. The U.S. trade deficit should be on its way out.

New Tax Law Favors Hedge Funds Over Managed Accounts

New Tax Law Favors Hedge Funds Over Managed Accounts

Hedge fund investors benefited from tax advantages over separately managed accounts (SMA) for many years. The 2017 Tax Cuts and Jobs Act (TCJA) widened the difference by suspending all miscellaneous itemized deductions, including investment fees. SMA investors are out of luck, but hedge fund investors can limit the negative impact using carried-interest tax breaks. TCJA provided a new 20% deduction on qualified business income, which certain hedge fund investors might be eligible for if they are under income caps for a service business.

The TCJA's Pass-Through Deduction Was Misguided From the Beginning

The TCJA's Pass-Through Deduction Was Misguided From the Beginning

The Tax Cuts and Jobs Act’s special 20% individual income tax deduction for pass-through businesses such as partnerships and sole proprietorships was misguided—and probably doomed to fail- from the beginning.

House GOP Cuts Taxes For Pass-Through Businesses, Then Worries About A Shift To Self-Employment

 House GOP Cuts Taxes For Pass-Through Businesses, Then Worries About A Shift To Self-Employment

For the second time in a week, House Republicans are pushing policy changes that seem to conflict with key elements of last year’s Tax Cuts and Jobs Act (TCJA). This time, the House says it is worried about the growing numbers of self-employed workers and is giving the IRS 90 days to explain how it will improve their tax compliance.

Has Uncertainty Undercut the TCJA’s Promised Investment Benefits?

Has Uncertainty Undercut the TCJA’s Promised Investment Benefits?

While the Tax Cuts and Jobs Act significantly cuts taxes for US corporations, it may have created so much uncertainty that the promised benefits of those tax cuts—new productivity-enhancing investment and a shift of foreign capital to the US—are being delayed.

Are Peruvian Chickens Cash?

Are Peruvian Chickens Cash?

The Tax Cuts and Jobs Act (TCJA) is plagued by a recurrent problem: Many parts of the law tax similar income or assets at different rates. That tendency has created an enormous mess with the tax treatment of pass-through businesses, where certain income from certain taxpayers enjoys a 20 percent individual income tax deduction while similar income from other taxpayers does not.

Jack Daniel's Shipments Upped as Trade War Loomed

Jack Daniel's Shipments Upped as Trade War Loomed

Brown-Forman earns only half of its revenue from the United States, with Europe accounting for a quarter and Mexico and Canada contributing around 5 percent and 1 percent of net sales, respectively. Shares of the Kentucky-based company were on course for their worst day in nearly seven years, falling 6.5 percent in afternoon trade as the company also warned of gross margin declines due to higher wood, agave and freight costs.

Trump's Trade And Immigration Policies Could Wipe Out Tax Cut Benefits

Trump's Trade And Immigration Policies Could Wipe Out Tax Cut Benefits

President Trump and his allies in Congress promised that the Tax Cuts and Jobs Act (TCJA) would supercharge the US economy, […]. But the negative economic effects of Trump’s highly restrictive trade and immigration policies threaten to overwhelm any benefit of the tax cuts.