Welcome to part 2 in our 4 part series on the impact the most recent election will have on the sports and fitness industry. In part one we explored the election’s impact on trade. Join us now for part two as expert analyst Bill Sells, SFIA Senior VP of Government Relations & Public Affairs, focuses on the impact the election results may have on taxes:
The recent election was a mixed bag for Sports & Fitness manufacturers and retailers but with all the uncertainty around a Donald Trump presidency it is difficult to predict what will happen in the industry. Will Trump honor all his campaign promises or will the realities of governing create challenges in fulfilling his promises?
Only time will tell, but he does have a unified Republican Congress to work with and Democrats defending 24 of 34 Senate seats up in 2018, which will make moving legislation easier. Here’s a brief preview of SFIA policy priorities and how they may be impacted by a Trump Presidency and Republican-controlled Congress.
President-elect Trump has stated he wants a tax package in his first 100 days and Congress is positioned to deliver one. Congress has been working on tax reform for years and now Republicans have the opportunity to enact their proposals. Expect the Republican-controlled Congress to send President-elect Trump a major tax package to restructure the individual and corporate tax code, but they will need some Democratic support in the Senate to get it done.
President-elect Trump and the Republican Congress agree in principal on many individual tax changes including: lowering income tax rates and reducing tax brackets, increasing the standard deduction and the child tax credit, eliminating the estate tax, modifying the individual alternative minimum tax to help middle the class and reducing taxes on capital gains, dividends and interest from investments.
On the corporate side, President-elect Trump and the Republican Congress favor a reduction in the corporate tax rate from 35% to 20%, exempt overseas earnings from the repatriation tax and repeal the corporate AMT. R&D deductions would continue but many other business deductions would be eliminated, businesses would be allowed to immediately expense investment costs and they would likely lower taxes on products made in America.
Coming Soon, Part 3: Health