Whatever the result of the Presidential Election 2016, it is apparent that we all love the United States. For the record, many of my closest friends represent all parties in this year’s election and I respect all the views. The question is what direction will this country take on taxes with either candidate?
The elephant in the room is healthcare and the fact that the Supreme Court has ruled this a tax. Supporters of healthcare legislation celebrated after the Supreme Court upheld the constitutionality of the Patient Protection and Affordable Care Act in a 5-4 ruling on June 28th 2012. In the ruling, the Supreme Court found that the penalties the law places on people who do not buy healthcare count as a tax protected by the Constitution.
Fast forward more than four years and we continue to see higher taxes surrounding healthcare with more increases to come. We experience businesses hiring more people part-time over full-time to avoid paying healthcare for full time employees. We are also experiencing more millennials wanting to work part-time with a 20-25 hour work week with the goal of spending more time in not-for-profit activities. This will not be tenable when they start having families of their own who need healthcare.
As businesses large and small reduce their workforce because of increased healthcare costs, it is having an impact on businesses and their ability to hire full time employees. Even though more companies and individuals are willing to pay the penalty, the discussion now is to increase the penalty in healthcare tax. This will undoubtedly have a big impact on the elections today.This is just one of many tax issues that come to our attention during the Presidential Election of 2016.
There are many other taxes that will be impacted depending upon the candidate elected and the action they take for all Americans in the years ahead. The tax community is very educated about these matters and it is their opinion that I value most. They see the issues on the front lines as they do the tax returns each year. These are the stories that need to be told by tax professionals everywhere. The opportunity to hear your voices through comments will be valuable contributions. Your voices are important because you are on the front lines doing the taxes for employers, clients and your own tax returns. This is the time to come together with ideas to help our country and every United States citizen regardless of party.
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