How Will Coronavirus Affect Future Taxes?

Todd Mardis: Yeah, our tax landscape is going to change dramatically, with the Coronavirus, we are in new water, right? We are spending money at levels that no one could have ever foreseen. As a matter of fact, we are going to probably double our physical budget for the whole country and then 1, 2 or 3 rounds of Cares Act that’s been funded by legislation today. Those amounts of money are going to have to be repaid, we are borrowing money to provide the Cares Act dollars, (much-needed dollars by the way) that are going to our business owners.

Ultimately that money is going to have to be repaid. And there is only one place that the Federal Government has to gain money, and that is they can print it, and obviously that becomes useless and worthless papers at some point, and they know that. So, the limit to the printing would be very soon realized, and ultimately the moneys that are being used to fund the Cares Act are going to be repaid, recouped through additional taxes paid by business owners.

So, with that being known, that the taxes will increase, given the Cares Act and the substantial amount of dollars that have been received by business owners. It is more important than ever to make sure that you have not only short-term but long-term planning because this taxation may take legislation that could 2/3 years out before they figure out how to recoup the cost through legislation or through taxes.