How Trump’s Economic Plan Could Impact Your Taxes, Business, and Wallet

Breaking Down Tax Cuts, Tariffs, Gas Prices, and the Housing Market

Taxes, tariffs, gas prices, and housing—oh my! Former President Donald Trump has laid out his economic plan, and whether you’re a business owner, taxpayer, or just someone trying to buy a house without breaking the bank, his proposals could have a big impact on your finances.

Let’s break down some of the key points of Trump’s plan, what they could mean for you, and whether they’ll make your wallet happier—or leave it crying in the corner.

1. Tax Cuts: More Money in Your Pocket?

Trump wants to extend the tax cuts he introduced in 2017, which lowered tax rates for most income brackets and increased the standard deduction. If you take the standard deduction instead of itemizing (which most people do), this means you could keep more of your money come tax time.

For context, under the current law, households making between $60,000–$100,000 a year would owe about $1,000 less in taxes than they would if Trump’s 2017 cuts expired. That’s an extra grand in your pocket—enough to cover a few months of groceries, a vacation fund boost, or maybe a few too many impulse Amazon buys.

The Catch?

Tax cuts mean less government revenue, and experts say this could add a staggering $7.75 trillion to the national debt. And since Social Security is already struggling, this could lead to a 23% cut in benefits by 2035. So, while lower taxes sound great now, the long-term impact on government programs could be a concern.

Bonus: Trump also wants to eliminate federal taxes on Social Security benefits, overtime pay, and tips—something that could benefit retirees and hourly workers alike.

2. Tariffs: A Tax by Any Other Name?

Trump loves tariffs almost as much as he loves talking about tariffs. His latest proposal includes a 25% tariff on all Mexican and Canadian imports and a 10% tariff on Chinese imports. The goal? Boost American manufacturing by making foreign goods more expensive, which could encourage businesses to make their products in the U.S. instead.

The Catch?

While this sounds good in theory, tariffs often backfire by raising consumer prices. U.S. companies that import goods will be the ones paying these tariffs, and guess what? They’ll pass those costs onto you.

One estimate suggests Trump’s proposed tariffs could add around $2,600 per year to household expenses on things like electronics, cars, and everyday goods. So, if you’ve been eyeing that new laptop, you might want to grab it before these tariffs kick in.

3. Gas Prices: Will They Go Down?

Trump plans to ramp up U.S. oil and gas production to lower gas prices. But will it actually work?

Here’s the thing: The U.S. already produces more oil than any other country, yet gas prices still depend on global markets. Even if we drill more, events like conflicts in the Middle East or OPEC decisions could still cause prices at the pump to fluctuate.

In short, while increasing production might help a little, don’t expect to fill up your tank for pocket change anytime soon.

4. Housing Market: Can You Finally Afford a Home?

If buying a house feels impossible right now, Trump’s plan might offer some relief. He wants to make housing more affordable by cutting regulations that drive up construction costs and opening federal land for development.

More housing supply = potentially lower prices.

The Catch?

Presidents don’t directly control housing prices or interest rates—those are determined by supply and demand, along with the Federal Reserve’s policies. So, while Trump’s plan could help increase supply, it’s not a magic fix.

Plus, experts say long-term affordability also depends on zoning laws and infrastructure, which aren’t exactly easy to change overnight.

Final Thoughts: What Does This Mean for You?

Trump’s economic plan includes some big promises—lower taxes, cheaper gas, and more affordable homes. But as with most things in economics, there are trade-offs. Lower taxes could mean higher national debt. Tariffs could make goods more expensive. And gas prices? Well, they’ll always be unpredictable.

So, what can you do?

📌 Stay informed. Tax laws and economic policies change frequently—make sure you know how they affect your wallet.
📌 Plan ahead. If tax cuts do extend, consider adjusting your financial plan accordingly.
📌 Get expert help. Taxes can be tricky, and that’s where we come in! Whether you’re a business owner or an individual, we’ll help you navigate the tax code and keep more of your hard-earned money.

Got tax questions? Need help maximizing deductions? Let’s chat! 💼💰

By kurpasesther, 4 weeksMarch 6, 2025 ago

The Beginner’s Guide to Taxes: Understanding the Basics

Taxes can feel like a complicated maze, especially if you’re new to the process. But understanding the fundamentals can make filing your taxes much less intimidating. Whether you’re a beginner to taxes and are preparing to file for the first time or just want a clearer picture of how everything works, this beginner’s guide will walk you through the essentials.

What Are Taxes?

Taxes are mandatory financial charges or levies imposed by the government on individuals and businesses. The money collected is used to fund public services such as schools, roads, healthcare, and national defense. There are many types of taxes, but the ones you’ll likely encounter most often include:

Income Tax: A tax on the money you earn.
Sales Tax: A tax added to the purchase of goods and services.
Property Tax: A tax on property you own, such as real estate.
Payroll Tax: Taxes withheld from your paycheck to fund Social Security and Medicare.

Who Needs to File Taxes?

If you earn income above a certain threshold, you are required to file a tax return. The threshold depends on your filing status (e.g., single, married filing jointly, head of household) and your age. Even if you’re not required to file, it might be worth it to claim a refund or tax credits.

How the Tax Process Works

Earning Income:
- Income can come from various sources: jobs, freelancing, investments, or self-employment. The government taxes most types of income.
Withholding and Estimated Payments:
- Employers typically withhold taxes from your paycheck and send them to the IRS on your behalf. Self-employed individuals often need to make estimated tax payments throughout the year.
Filing a Tax Return:
- Each year, you file a tax return to report your income, claim deductions and credits, and determine whether you owe taxes or are due a refund.

Key Tax Terms You Should Know

Gross Income: The total income you earn before taxes and deductions.
Taxable Income: The portion of your income that is subject to taxes after deductions.
Deductions: Expenses that reduce your taxable income (e.g., student loan interest, charitable donations).
Credits: Direct reductions in your tax bill (e.g., Child Tax Credit, Earned Income Tax Credit).
Refund: Money returned to you if you’ve paid more taxes than you owe.

Step-by-Step Guide to Filing Taxes

Gather Your Documents:
- W-2 forms (from employers).
- 1099 forms (for freelance or other income).
- Receipts for deductions (e.g., medical expenses, charitable donations).
- Records of any tax credits you’re eligible for.
Choose Your Filing Method:
- Use tax preparation software like TurboTax or H&R Block.
- File through a professional accountant.
- Complete and mail a paper return (less common these days).
Determine Your Filing Status:
- Your filing status affects your tax rates and standard deductions. Common statuses include single, married filing jointly, married filing separately, and head of household.
Fill Out Your Return:
- Report your income, deductions, and credits.
- Use tools or a professional to ensure accuracy.
Submit Your Return:
- File electronically for faster processing and refunds.
- If you owe taxes, pay online or by check before the deadline (usually April 15th).

Tips for Beginners

Start Early: Don’t wait until the last minute to prepare your taxes. Starting early gives you time to gather documents and avoid mistakes.
Understand Deadlines: Missing deadlines can lead to penalties. Mark important dates on your calendar.
Consider Professional Help: If you’re unsure about deductions, credits, or filing, consult a tax professional. They can often save you money and ensure compliance.
Keep Records: Save copies of your tax returns and important financial documents for at least three years.
Learn About Tax-Advantaged Accounts: Accounts like 401(k)s and HSAs can reduce your taxable income while helping you save for retirement or medical expenses.

Common Mistakes to Avoid

Filing late or not at all.
Forgetting to sign your return.
Misreporting income or deductions.
Overlooking tax credits.
Using outdated tax forms.

Final Thoughts

Taxes don’t have to be overwhelming even if you’re just a beginner to taxes. By understanding the basics and staying organized, you can tackle tax season with confidence. If you’re ever in doubt, don’t hesitate to reach out to Kurpas Financial who can guide you through the process or simply get the job done, and ensure you’re getting the maximum benefit.

Remember, paying taxes isn’t just a legal requirement—it’s a way of contributing to the services and infrastructure we all use every day. With the right approach, you can make the process smoother and even uncover ways to save money along the way.

By kurpasesther, 3 monthsJanuary 9, 2025 ago

Tax Advice

5 Overlooked Tax Deductions Your Small Business Shouldn’t Miss

Tax season can feel like a tangled mess of numbers, deadlines, and fine print. It’s no wonder that, in the scramble to get everything squared away, many small business owners miss out on some valuable tax deductions. Sure, you’re probably claiming the usual suspects, like office supplies or internet expenses, but there are plenty of overlooked deductions that could save your business a bundle. Here’s a rundown of the top five, with a touch of humor to lighten the load.

1. Home Office Deduction (Yes, Your Couch Counts!)

If you work from home, your “home office” doesn’t need to be a fancy executive suite to qualify. Whether it’s a corner of your dining room, a section of your living room, or that cozy spot on the couch you call your “desk,” you could be eligible for a home office deduction. As long as the space is used exclusively for business, you’re good to go.

What You Can Deduct:

A portion of your rent or mortgage interest, utilities, and even repairs.
The simplified option ($5 per square foot, up to 300 square feet) can keep it straightforward if calculating percentages makes your head spin.

Why It’s Overlooked:
Many people assume you need an entire room for it to count. Nope! As long as it’s dedicated space, it’s fair game.

2. Business-Related Meal Expenses (But Not Your Friday Pizza Night)

If you’re grabbing a meal with a client, partner, or anyone you’re “talking shop” with, that’s a business expense! This one is especially important all business meetings involving food and drinks are 50% deductible.

What You Can Deduct:

Meals with clients or team meetings at a restaurant.
Snacks provided at the office to keep your staff fueled. (Yes, coffee counts too.)

Why It’s Overlooked:
Some business owners worry this one will “flag” them. But remember, it’s perfectly legitimate as long as you keep receipts and a brief description of who you ate with and why.

3. Vehicle Expenses (Your Car Is Doing Double Duty!)

Whether it’s for a quick supply run, a client visit, or a trip to the bank, your business might be putting mileage on your car. If you’re not keeping track of your business miles, you’re leaving money on the table.

What You Can Deduct:

Mileage (currently $0.655 per mile for 2023), which covers gas, maintenance, and wear and tear.
Or, if you’re good with spreadsheets, you can keep records of actual expenses (like gas and repairs) and calculate based on business use.

Why It’s Overlooked:
Keeping a mileage log sounds like a hassle, but there are apps that make it painless. A few taps and you’re set.

4. Professional Development (Yes, Your “Conference in Hawaii” Counts)

Investing in yourself is a business expense! If you’re attending workshops, conferences, or even online courses to sharpen your skills, you can deduct these costs as long as they’re related to your industry.

What You Can Deduct:

Conference fees, travel, lodging, and meals while attending.
Educational materials and course fees.

Why It’s Overlooked:
Sometimes, people don’t realize that these can be deducted because they feel more like “personal growth” than business. But hey, if it makes you better at what you do, the IRS sees it as a business expense.

5. Bank Fees and Interest (Yes, They Get You Coming and Going)

If your business bank charges you monthly fees, ATM fees, or any other kind of fees, you can (and should) deduct them. The same goes for interest on business loans or credit card interest.

What You Can Deduct:

Fees for your business bank account or credit card.
Interest on business loans or on purchases you make using a business credit card.

Why It’s Overlooked:
It’s easy to overlook these small, recurring costs, but they add up. You’re being charged, so make it work in your favor come tax season.

Final Word: Don’t Miss Out on These Deductions

Many small businesses miss out on these deductions simply because they’re not aware of them. As a rule of thumb, anything that supports your business can potentially qualify, so keep receipts and take a little time to organize. A small effort now means potentially big savings when you file.

And, if the fine print is too much, remember: hiring a pro is also deductible!

By kurpasesther, 4 monthsDecember 6, 2024 ago