Crowe shares what a Trump administration could mean for tax policy and the Tax Cuts and Jobs Act
CHICAGO, Nov. 6, 2024 /PRNewswire/ — Donald Trump has been elected the 47th president of the United States. Throughout the election season, Trump took to the campaign trail with tax proposals that include making many of the expiring Tax Cuts and Jobs Act (TCJA) provisions permanent. Now the fate of these provisions is in the hands of Congress. Crowe LLP, a public accounting and consulting firm, reveals more on his tax proposals.
“Even though the House is still up for grabs, with Republicans controlling the Senate, Trump is significantly more likely to make good on many of the tax policies he has been campaigning on, including making popular provisions of the expiring TCJA permanent and increasing tariffs,” said Rochelle Hodes, Crowe Washington national tax principal. “Time is ticking for the TCJA, which will take center stage in Congress over the next year. With a Trump win and the Senate on his side there is a better chance of extending TCJA, but without offsets, the cost of making its expiring provisions permanent is significant. For a party that is generally opposed to increased government spending, getting to a consensus on how to address that cost might be difficult. Taxpayers should continue to monitor developments and evaluate their current tax position to prepare for change – nothing is certain and there will be a lot on the table leading up to the TCJA cliff at the end of next year.”
Below are key aspects of the Trump campaign’s tax proposals, which may shed light on the tax policies he’ll advocate for in his administration. It will also be important to keep an eye on tariffs under a Trump administration.
Individual tax (including estate tax and gift tax)
Make most of the expiring TCJA provisions permanent, including the higher standard deduction, the lower top marginal tax rate, the lower capital gains rate, and the higher estate and gift tax exemptionAllow the TCJA limit on the deduction for state and local taxes to expireAllow a deduction for interest on loans to purchase automobiles made in the U.S.Allow a deduction for the cost of home generators in states hit by natural disastersExpand qualifying tuition programs to cover homeschoolingEliminate income tax on Social Security benefitsExclude tips from income tax and payroll taxExclude overtime pay from tax, though it is unclear whether this applies solely to income tax or to both income and payroll taxEliminate double taxation for U.S. citizens overseas
Business tax
Decrease the corporate tax rate from 21% to 15%Make the TCJA Section 199A pass-through business deduction permanent
Energy tax and real estate tax
Repeal energy tax incentives enacted under the Inflation Reduction ActProvide tax incentives for first-time homebuyers
For more information, visit Election 2024: Tracking tax issues.
About Crowe
Crowe LLP is a public accounting and consulting firm that uses its deep industry expertise to provide audit, tax, and consulting services to public and private entities. Crowe is recognized by many organizations as one of the best places to work in the U.S. As an independent member of Crowe Global, one of the largest global accounting networks in the world, Crowe serves clients worldwide. The network consists of more than 200 independent accounting and advisory services firms in more than 130 countries around the world.
View original content to download multimedia:https://www.prnewswire.com/news-releases/donald-trump-wins-presidential-election-fate-of-tcja-looking-up-302297621.html
SOURCE Crowe LLP
