Page 19 - Arkansas Trucking Report Volume 22 Issue 6

Complying with Changing

Laws a Taxing Issue

New tax laws to affect trucking businesses

By Steve Brawner Senate have passed different versions. child tax credit from $1,000 to $1,600.
Contributing Writer On Nov. 16, the House package was Meanwhile, to reduce the impact on the
approved largely along party lines. For federal budget deficit, it would end cer-
This much is certain: Congress is businesses, that package would cut the tain deductions such as those for state
trying to pass a tax reform package, and corporate tax rate from 35 to 20 percent and local taxes, medical expenses and
if it does, it will affect trucking. and create a top rate of 25 percent for student loans.
How much, and in what ways? It’s pass-through entities including sole The Senate version also reduces the
still too early to tell. But as of press proprietorships, partnerships, limited corporate tax rate from 35 to 20 per-
time, some of the most important pro- liability companies, and S corporations. cent, but it would keep the seven brack-
visions would The first $75,000 for business owners ets, the top one being 38.5 percent. For
• Allow 100 percent first-year deduc- earning $150,000 or less would be taxed individuals, it would double the stan-
tions for purchases such as trucks at 9 percent, but that provision would dard deduction to $24,000, double the
and trailers; be phased in. child tax credit from $1,000 to $2,000,
• Would offer advantages to compa- For individuals, the current seven and cut various personal exemptions
nies organized as C corporations tax brackets would be reduced to four, such as the one for state and local taxes.
versus other forms; the top one being 39.6 percent. The The plan effectively would end the man-
• Would reduce or end the estate tax. standard deduction would double to date for individuals to purchase health
The House of Representatives and $24,000. It also would increase the 

ARKANSAS TRUCKING REPORT | Issue 6 2017 19