What It Means for Taxes as the New Congress Gets Busy

Jan. 3 marks the beginning of the next Congress, where Republicans will lead both chambers and control the White House. Democrats being out of power has big implications for tax policy, as GOP lawmakers heading into the new year debate what to renew from the 2017 GOP tax law, known as the Tax Cuts and Jobs Act. The TCJA was passed with no votes from Democrats and benefits skewed toward the wealthy and corporations. Incoming GOP leaders have proposed breaking their top priorities into two bills and moving them through Congress using the reconciliation process. The first would jump-start President-elect Donald Trump's priorities on immigration and gas drilling, and the second would include tax and other legislative priorities. Republicans say moving tax legislation to later in the year would give them more time to decide what to do about many of the law’s individual provisions that expire at the end of 2025. They also will have to decide what Trump campaign promises to include. On this episode of Talking Tax, Bloomberg Tax reporters Chris Cioffi, Zach Cohen, and Lauren Vella discuss what to expect in the 2025 tax fight, and the policy issues that likely will define the debate. Do you have feedback on this episode of Talking Tax? Give us a call and leave a voicemail at 703-341-3690.