As the new administration prepares for a pivotal legislative year, 2025 is shaping up to be a critical moment for U.S. tax policy. With Republicans controlling the White House, House, and Senate, discussions are underway to extend expiring provisions from the Tax Cuts and Jobs Act (TCJA) and implement bold new tax reforms proposed by President-elect Donald Trump. These include cutting corporate tax rates further, exempting Social Security benefits and tip income from taxation, and introducing a host of other changes that could significantly alter the tax landscape. However, implementing these measures will face challenges due to their high costs and growing concerns over the federal deficit.

A hallmark of these negotiations will likely be the inclusion of phasedowns and phaseouts, as seen with the TCJA, to balance revenue impacts while enabling ambitious reforms. With the potential for sweeping changes to both individual and corporate tax systems, businesses and taxpayers alike should stay informed on the latest developments.

For a detailed analysis of Trump’s tax proposals and insights into the expected 2025 tax legislation, read the full article on Accounting Today.