MOSES LAKE — Federal tax legislation passed in December will make a difference to businesses and individuals – but business owners in particular should consult their accountants to determine the exact impact. The news was good enough for one local business owner that he gave his employees a raise.
Moses Lake orthodontist Dino Cacchiotti said his tax liability changed, enough so that he started thinking about way to share it. “Basically, everybody will get a dollar an hour raise.” Cacchiotti announced it to his staff last week.
It does raise employee costs, Cacchiotti said, but those costs will be offset by tax savings. After talking with his accountant, looking at his tax situation, “I just started thinking about it.”
Changes in the federal tax code will be beneficial to many businesses, he said. “I think it does help small business, at least in my situation.”
Accountant Sid Gregory said the impact on businesses really does depend on the situation of the individual business. “It depends on the circumstances of the business,” Gregory said. “It's very complex,” he said of the new tax law.
Business owners can get a better understanding of what the revisions to the tax code will mean for them by contacting their accountant, he said. “Definitely talk to your professional.”
Whatever happens with businesses, most individuals probably will benefit from the tax revisions, Gregory said. “The tax tables have been reduced for individuals.”
But as with businesses, the impact of the tax revisions will depend on the specific circumstances of each individual. “The tax rate has gone down for most individuals,” he said – but it depends.
If the individual (or family) circumstances haven't changed between 2017 and 2018, then that individual's tax rates probably will go down, he said. However, most circumstances don't remain static, whether it's a business, a family or an individual. And as circumstances change – whether it's an individual, a business or a family – the tax situation will change, he said.
“It (the tax law impact) is so varied,” and that's why it's important to consult with a tax professional, he said. That's true for individuals too, especially if their circumstances have changed (marriage, divorce, new job, among other things) during the year.
Cheryl Schweizer can be reached via email at email@example.com.