Our 8th Premier Education/Practical Application event, held November 14, 2017, gave us an inside perspective on what’s happening on the hill. While all of this is still evolving, here’s what we know at this point.
From speaker Susan Olson, VP of Government Relations at Natixis Global Asset Management
1. Tax reform is coming. From Susan’s comments and the attitude on Capitol Hill, it seems likely to be passed before year-end.
2. While the details are being worked out, there are provisions in both the House and Senate versions that are similar and likely to be part of the final bill.
- Child Tax Credit: The child tax credit would be increased
- Standard Deduction: Would roughly double
- Personal Exemptions: Would be eliminated
- Alternative Minimum Tax: Would be eliminated
- SALT (State & Local Taxes): Would be eliminated (the House keeps $10k for property taxes)
- Personal Tax Brackets: Would change significantly in both bills (four brackets for House and seven for Senate)
- Corporate Tax Rate: Would be lowered to 20 percent (the Senate waits until 2019 to implement)
3. What about the deficit? The deficit is projected to increase significantly in the short term, but with the hope of increased GDP and economic growth, it would be reduced down the road (i.e., we need to grow our way out of it).
4. It’s possible to see more indictments from special investigator Mueller. Susan Olson, the speaker, brought up Jared Kushner (the president’s son-in-law) and maybe the president’s son, Donald Trump Jr., as targets in the next round.
From Greater Midwest Financial Group –
The fiduciary rule, partially implemented in June 2017, is a message to the public that they should be working with advisors who place their interest first. Basically, you want a group that works hard for you, knows what they’re doing and really cares. If you know someone who is not working with a group that brings all of that, Greater Midwest Financial Group is here to help.
One of my personal takeaways was that I should keep my day job. The event comedian Stevie Ray is funny, and well, me, not so much. The car-starting skit he performed is great. In case you missed it, check it out. [https://www.youtube.com/watch?v=PRuq2XD48zY]
James W. Ronn, CFP®, President
Greater Midwest Financial Group, LLC.
3222 Rice Street
St. Paul, MN 55126-3047
Phone: (651) 490-9790 Fax: (651) 490-9788