Almost 50 Percent of CPAs Say New Jersey Corporations to Benefit from Tax Reform
ROSELAND, N.J. — Almost 50 percent of the 133 certified public accountants (CPAs) surveyed earlier this month by the New Jersey Society of CPAs (NJCPA) said either “many” or “most/all” of their corporate clients would benefit from the Tax Cuts and Jobs Act of 2017 (TCJA). Similarly, almost 50 percent of the 74 CPAs polled who work for New Jersey companies said their company will see “moderate” to “significant” tax savings from tax reform. The NJCPA separately polled CPAs working at CPA firms about whether or not their corporate clients stand to benefit from the TCJA and polled corporate CPAs about what benefits, if any, the TCJA will have on their companies.
Of those CPAs who said their clients will benefit from tax reform, more than 50 percent said clients have not yet decided what to do with the extra tax relief, while more than 30 percent said their clients plan to reinvest in their business (e.g., equipment or software). More than 25 percent said their clients plan to expand their business, and more than 20 percent said they will either hire more employees or provide raises for employees.
Similarly, the majority (46 percent) of the corporate CPAs who said their company will benefit from tax savings have yet to decide what to do with the savings, while more than 31 percent plan to reinvest in the business and nearly 15 percent plan to expand their business.
“Tax reform has brought some challenges and benefits to New Jersey residents and businesses. It’s good to see, as expected, that some cost savings from corporations will funnel down to employees,” said Ralph Albert Thomas, CEO and executive director at NJCPA.
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The New Jersey Society of Certified Public Accountants, with more than 15,000 members, represents the interests of the accounting profession and advances the financial well-being of the people of New Jersey. The NJCPA plays a leadership role in supporting the profession by providing members with educational resources, access to shared knowledge and a continuing effort to create and expand professional opportunities. Visit njcpa.org