With presidential and congressional victories in the recent US general election, Republicans will be working to enact President-elect Donald Trump’s tax policy priorities. Below is a list of those policy positions that pertain to in-house tax professionals and their businesses. These were sourced from the Tax Foundation’s article, “Donald Trump Tax Plan Ideas: Details and Analysis,” written and updated prior to the election. For a deeper dive into the potential effects of these policies, visit www.taxfoundation.org/research/all/federal/donald-trump-tax-plan-2024.
- Making the individual TCJA expirations permanent, including the Section 199A pass-through deduction and noncorporate loss limitation;
- Restoring the TCJA business tax provisions, effective January 1, 2026, including:
- 100 percent bonus depreciation;
- R&D expensing; and
- EBITDA-based interest limitation;
- Reinstituting the 28.5 percent domestic production activities deduction to decrease the effective corporate tax rate for domestic production to fifteen percent;
- Exempting tips from income taxes;
- Exempting Social Security benefits from income taxes;
- Exempting overtime pay from income taxes;
- Eliminating green energy subsidies in the Inflation Reduction Act;
- Raising current Section 301 tariffs to sixty percent on imports from China;
- Imposing a universal tariff of twenty percent on all imports to the United States; and
- Foreign retaliation tariff of ten percent on all US exports and additional in-kind tariffs on US exports to China.
As the United States moves forward into this second Trump administration, TEI will remain steadfast in serving and advocating for in-house tax professionals and departments worldwide.
We encourage you to look to the Institute community on TEI Engage to pose questions, comment, and reply to your colleagues to discuss any uncertainties surrounding the new administration’s tax policies as they potentially progress into law. Visit teiengage.tradewing.com to connect with your colleagues.
Source: Erica York, Garrett Watson, Alex Durante, and Huaqun Li, “Donald Trump Tax Plan Ideas: Details and Analysis,” Tax Foundation, October 14, 2024, www.taxfoundation.org/research/all/federal/donald-trump-tax-plan-2024.
