President Donald Trump pitched his tax plan as a boost for truckers at an event in Pennsylvania, saying, “America first means putting American truckers first.”
“It will be rocket fuel for our economy,” Trump said of a plan that would dramatically cut corporate tax rates from 35 percent to 20 percent, reduce the number of personal income tax brackets and boost the standard deduction.
Donald Trump’s proposal to lower the corporate tax rate to 15% as part of his tax overhaul announced Wednesday. Smaller fleets and owner-operators, who make up more than 90% of the nation’s trucking companies, also have reason to cheer because of Trump’s proposed flow-through income tax.
And that is just a small portion of the benefits to those in trucking. It’s important to note, however, that details on Trump’s plan are scarce and many Republicans are not happy with the outline, so whether the plan goes anyway in Congress is very much up in the air.
Depending on how the law is drafted, that could enable some people to pay that low 15% rate on their earnings instead of an individual income rate up to 35%. People who already receive their income through investment vehicles wouldn’t have to change anything for a windfall.
Of course, trucking fleets of all sizes would see their corporate tax rate cut slashed from 35% to 15%. House Republicans have proposed a 20% corporate rate. Also, under some Republican plans being floated in the House, businesses would be able to immediately fully deduct the full value of equipment purchased.
Another big win for trucking fleets may come from the lack of a “border adjustment tax” (BAT). Anyone involved in importing goods, particularly retailers, breathed a small sigh of relief because of the missing BAT, but it would also affect equipment prices in trucking with many truck manufacturers and suppliers either building some or all of their products, or sourcing components, from foreign countries, particularly Mexico.
The Junction LLC
The Junction LLC is a full service transportation management provider headquartered in Omaha, Nebraska offering Trucking Shipping Omaha Freight Brokerage Service. We are the most recent addition to a family of logistics businesses started in the 1950’s. We can meet any supply chain need from the production line to the store shelf.
The Junction LLC is your complete trucking shipping Omaha freight brokerage service, with many years of experience in the trucking, shipping and freight industry. Whether your shipping and freight needs are Full Truckload (FTL), Less-Than-Truckload (LTL), heavy haul, or something else, we offer affordable solutions to move the freight quickly.
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