HOW TO COMPARE CREDIT BUILDER APPS IN 2024

Explore how the upcoming 2025 tax changes could reshape the financial landscape—and what strategies businesses should adopt today.

As the U.S. edges closer to the end of 2025, tax issues are becoming a central concern for individuals and businesses alike. Known widely as the "2025 tax cliff," the expiration of many provisions from the 2017 Tax Cuts and Jobs Act (TCJA) will bring a wave of uncertainty. 

Whether you’re a small business owner, a corporate decision-maker, or an individual taxpayer, the upcoming elections and policy changes could significantly impact your tax liability.

In this blog, we’ll break down the latest tax news, what each party is proposing, and how you can prepare with smart tax solutions and strategies.

Why 2025 Matters for Taxpayers and Businesses

At the end of 2025, most TCJA provisions are set to expire. That includes changes in individual income tax rates, standard deductions, estate tax exemptions, and numerous corporate tax provisions.

Both Republicans and Democrats agree that tax policy will be a key agenda item immediately following the 2024 elections. However, they differ dramatically on what parts of the law should be extended—and how those extensions should be funded.

What Are the Parties Proposing?

The 2024 presidential candidates—Donald Trump and Kamala Harris—offer contrasting visions for tax policy. Understanding their differences is essential to anticipating how the tax environment might shift and identifying opportunities for tax relief.

1. Corporate Income Tax Rates

• Trump supports cutting the corporate tax rate to 15%, but only for companies that manufacture their products in the U.S.
  
  
• Harris proposes increasing the rate to 28%, potentially raising over $1.3 trillion in federal revenue over 10 years.
  
  
• Common Ground: Some Republicans are open to raising the rate modestly (possibly to 25%) to fund extensions of other tax benefits, showing a willingness for compromise.
  

2. How Will New Tax Policies Be Paid For?

• Trump’s View: Tax cuts pay for themselves through economic growth. Therefore, he doesn’t see the need for revenue offsets.
  
  
• Harris’ Approach: High-income individuals and corporations should bear the cost of new tax breaks through increased taxation. This includes a proposed 25% billionaire’s tax, higher capital gains tax rates, and a 4% stock buyback excise tax.
  
  

The difference in strategy means businesses must prepare for either looser or tighter tax regulations—depending on the election outcome.

The Role of Budget Reconciliation

If either party wins control of the White House and Congress, they can use budget reconciliation to pass tax legislation with a simple majority in the Senate—avoiding the 60-vote filibuster threshold. 

In a divided government, compromise will be essential, which may delay or complicate any major tax overhauls.

This process is critical for implementing broad tax solutions, including the extension or replacement of TCJA provisions.

Expiring Provisions and Their Impact

Among the most debated provisions set to expire:

• State and local tax (SALT) deduction cap
  
  
• Bonus depreciation
  
  
• Estate tax exemption
  
  
• R&D expense deduction changes
  
  
• Interest expense limitations
  
  

Both candidates support expanding the Child Tax Credit and offering tax relief for tipped income—providing some clarity in an otherwise uncertain landscape.

How Businesses Should Prepare

Regardless of political outcomes, a tax bill is coming in 2025 or early 2026. Here’s how businesses can start preparing:

✅ Model Multiple Scenarios: Use different assumptions based on candidate proposals to understand potential liabilities and opportunities.

✅ Work with Tax Advisors: Don’t navigate this alone. The right professionals can help you explore eligible deductions, credits, and structuring strategies.

✅ Track Legislative Updates: Stay updated with the latest tax news and policy discussions to pivot your strategy in real-time.

✅ Plan for Increased Scrutiny: If higher corporate rates or enforcement are enacted, ensure your records and reporting are audit-ready.

✅ Evaluate Capital Gains and Investments: Be strategic about any planned sales or reinvestments—especially if capital gains rules change.

Final Thoughts: Be Proactive, Not Reactive

The 2025 tax cliff will be one of the most pivotal tax events in decades. As policymakers debate and develop new tax laws, individuals and businesses must be proactive. 

Whether the result is a sweeping tax overhaul or a series of modest adjustments, preparation will be key to minimizing risk and maximizing tax relief.

At Resoly, we specialize in helping businesses and individuals navigate complex tax landscapes with clarity and confidence. From understanding new legislation to building custom tax solutions, we’re here to support your journey.

Need expert help planning for 2025 tax changes?
Explore your options and connect with a tax specialist at www.resoly.com today.