Editor’s Note: This article provides an accurate overview of key tax changes and policy actions initiated by the new administration. However, the pace of legislative and executive developments in Washington remains extraordinarily rapid. More recent actions—particularly shifts in tariff policies—may have a larger impact on the economy and our clients than some of the initial policy changes. Given the evolving nature of these regulations and their potential financial implications, we are closely monitoring these developments. We encourage you to stay informed and reach out to your advisor for the most up-to-date guidance tailored to your specific situation.
After the recent election, any significant changes in tax and economic policy will affect companies, people, and the general economy for years to come. By the same token, inaction in 2025 could also have significant consequences for business owners and individuals. One of the most important debates on tax policy revolves around the continuation—or expiration—of important Tax Cuts and Jobs Act (TCJA) of 2017 clauses. Several broad changes resulting from this law include:
- A permanent reduction in the corporate tax rate to 21%.
- Temporary cuts to individual income tax brackets, which are set to expire at the end of 2025.
- Temporarily doubled estate, gift and GST tax exemptions, set to expire at the end of 2025.
