Nine months into the Trump presidency, proposed tax reforms have been impeded, leading to confusion for Americans around the world, Bambridge Accountants managing partner Alistair Bambridge explains
Tax cuts have always been a touchstone issue for Republicans, and president Trump has been quick to tap into their popularity, both during the election campaign and after taking office.
So much so that amid the barrage of policy announcements that followed his January inauguration was a plan which managed to combine personal tax cuts with another of Trump’s flagship policies: the dismantling of president Obama’s healthcare programme.
Catnip-like appeal
The scrapping of the Net Investment Income Tax was one of a raft of measures the new president, with characteristic understatement, described as the ‘biggest tax reform in a generation’.
The Net Investment Income Tax is a relatively obscure wealth levy, which since January 2013 has imposed a 3.8% surtax on an American citizen’s investments when their net income is above $200,000 (£167,798) for individuals and $250,000 for married couples.
