Retire With Purpose - The Retirement Podcast 473: Retirement Tax Planning: Exploring the Impact of a Republican Trifecta on Your Taxes and Bottom Line
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Dec 13, 2024 Marshall Johnson, a co-host specializing in retirement tax planning, delves into the implications of recent tax policy changes following the 2024 elections. He discusses how the Tax Cuts and Jobs Act is set to expire in 2026, impacting future tax rates. Johnson provides insights on navigating state and local taxes, estate tax planning, and strategic financial planning for retirees. He emphasizes the importance of staying informed to maximize retirement tax opportunities and shares advice for optimizing personal financial strategies.
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Tax Reform History
- The Republican Party's immediate priority in 2016, after gaining unified control, was tax reform.
- This resulted in the Tax Cuts and Jobs Act (TCJA) of 2017, which aimed to simplify the tax system but ultimately made it more complex.
TCJA and Expiration
- The TCJA lowered tax rates but added complexity, with current tax brackets set to expire on December 31, 2025.
- This expiration could lead to about a 20% tax increase, prompting discussions about potential extensions, amendments, or a return to pre-2017 tax codes.
Trump's Negotiation Tactics
- Trump's campaign trail proposals, like abolishing income tax and relying on tariffs, might be negotiation tactics rather than concrete plans.
- He uses extreme positions to push the opposition off balance, similar to negotiating a lower price when buying a house.
