💰Taxes, 📈Trends, 🎧Podcast
Wishing a happy belated Mother's Day to all the mothers and resilient women everywhere.
We appreciate your time spent reading this month's edition of the Resilient Insights Newsletter. This issue comprises roughly 547 words and is estimated to take about 2.5 minutes to read.
1 Big Thing: Navigating the Expiration of the Tax Cuts and Jobs Act: What’s at Stake in 2025
Tax cuts enacted in 2017 by Congress and signed into law by President Donald Trump are set to expire in 2025, setting the stage for a major showdown on whether to extend, reform, or sunset these provisions. This will significantly impact consumers and businesses alike..
Why it matters: The outcome of the 2024 election will have a major influence on the direction Congress and the next president take regarding the Tax Cuts and Jobs Act (TCJA).
According to the Tax Foundation, unless Congress acts, a “vast majority of Americans will see higher, more complicated taxes beginning in 2026.”
The key details: The TCJA included historic reforms that reduced the tax burden on businesses and consumers alike. Some key provisions include:
It restructured individual tax brackets and rates and indexed them for inflation.
It nearly doubled the standard deduction and increased the Child Tax Credit.
It reduced the corporate tax rate to 21% from 39% and included a 20% deduction for pass-through businesses.
Our viewpoint: We see three scenarios playing out for the TCJA pending the outcome of the 2024 election.
President Trump wins and Republicans control Congress: Republicans would likely use the reconciliation process again to bypass the 60 votes needed in the Senate to extend some version of the TCJA.
President Biden wins and Democrats control Congress: President Biden has said he would not raise taxes on families making less than $400,000 per year. It seems likely there would be less urgency to extend the TCJA, and instead, some reforms and sunsets seem like the probable outcome.
President Biden or Trump wins and there is a divided Congress: Compromise would be needed to avoid an across-the-board tax increase on businesses and consumers alike.
Bottom line: A guiding principle for Resilient Partners is being proactive in shaping the legislative and policymaking process.
House Ways and Means Chairman Jason Smith has formed 10 teams to study and identify solutions for the expiring TCJA.
The Tax Foundation has outlined scenarios for navigating the expiring TCJA.
Let Resilient Partners help you prepare for this important debate. Now is the time to begin planning and engaging in the process.
2. Critical Developments We’re Watching 👀
Corporate America Sitting on the Sidelines: The Wall Street Journal reports that corporate America is taking a more reserved stance in the 2024 presidential election between President Joe Biden and former President Donald Trump. Read more here.
Tariffs on Chinese Products: The Biden administration announced it would increase tariffs on a host of Chinese products, including electric vehicles, semiconductors, and solar panels. Read more here.
Noncompete Agreements Banned: The Federal Trade Commission voted to ban noncompete agreements. Read more here.
Bipartisan Social Media Legislation Unveiled: House Energy and Commerce Committee Chair Cathy McMorris Rodgers and Ranking Member Frank Pallone want to sunset Section 230 of the Communications Decency Act, which shields social media companies from liability. Read more here.
3. 🎧This Week on the Pod
On this week’s episode of the Resilient Insights Podcast, we sit down with Randy Charles from Greenway Steel to better understand and discuss what Carbon Border Adjustments Mechanisms (CBAM) are and what they mean for the future of sustainability and manufacturing.